The European Investment Bank announced on Thursday, January 15, financing of €90 million to Metlen, providing strong momentum to the investment program with a total budget of €296 million. The ambitious plan aims to increase bauxite production and launch gallium production, two critical metals for the European Union’s green and digital transition. This financial support represents the third major milestone in the project’s implementation, following the company’s Final Investment Decision made a year ago and the program’s inclusion in March among the EU’s 47 strategic projects for critical raw materials under the Critical Raw Material Act.
Read: METLEN: Strategic €90 million financing from EIB for bauxite and gallium
Europe’s first gallium production facility
The confidence shown by the EIB strengthens Metlen’s venture to create Europe’s first industrial gallium facility. The plant will be constructed at the Aluminium of Greece industrial complex in Agios Nikolaos, Boeotia, and is expected to begin operations in 2027. Full production capacity will be achieved in 2028, with an annual target of 50 tons of gallium, sufficient to cover most of Europe’s needs for this specific metal.
The investment, as reported by Lalela Chrysanthopoulou in energygame.gr, comes at a critical time for Europe, as securing strategic autonomy in critical raw materials is at the top of priorities. Today, China largely controls the global market and has imposed export restrictions to the West. Meanwhile, demand for gallium in Europe continues to rise, while its price has nearly doubled in the past year, from $940.50 per kilogram in early 2024 to approximately $2,000 today.
Metlen’s Executive Chairman, Evangelos Mytilineou, emphasized the project’s strategic importance: “With EIB funding, we are implementing an emblematic project that decisively strengthens European self-sufficiency in critical raw materials by incorporating gallium into industrial production within the EU for the first time and enhancing Greece’s regional cohesion and industrial base.”
Mining and industrial facility modernization
The European Investment Bank financing will be directed toward modernizing bauxite extraction at the Parnassos and Giona region mines, as well as upgrading the alumina and aluminum industrial complex in Agios Nikolaos. Metlen’s new gallium production unit is already being developed at the same facilities.
The comprehensive investment plan includes:
- Increasing annual bauxite production capacity to 2 million metric tons from the current 1.1 million
- Expanding alumina production to 1.26 million tons from 865,000 tons
- Developing new bauxite mining deposits
- Constructing new building facilities and procuring mechanical equipment for the gallium production line
- Expanding and upgrading the port at the Agios Nikolaos complex
International interest in Greek gallium
Metlen’s target of 50 tons annual gallium production is particularly ambitious, considering that global metal production is estimated at 550 million tons. Gallium has a wide range of applications, from integrated circuits in computing and telecommunications to LED lamps, photovoltaic panels, and permanent magnets.
During 2024, the group proceeded with closing the first supply agreements with companies from the United States, Europe, and Canada. Particularly intense was the interest from American officials who visited Athens in November for the PTEC Summit. US annual metal needs are estimated at 600 to 700 tons, and according to information, Americans expressed interest in long-term contracts lasting 10 to 20 years to purchase a significant portion of production starting next year.
Dimitrios Stefanidis, head of Metlen’s metals division, characterized the project in an interview with S&P Global as “a proactive measure to mitigate supply chain risks and strengthen Europe’s strategic autonomy.” He noted that Europe currently imports about 90% of the gallium it consumes, and the new production capacity “could fully replace these imports, ensuring stable and secure supply for European industries.”
