(Bloomberg) — Greece’s Metlen Energy & Metals SA will invest about €296 million ($304 million) in the European Union’s first gallium production line, as China’s ban on exports of the critical mineral to the US encourages Western nations to seek their own supplies.
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The project will be integrated with bauxite mining and processing into alumina at Metlen’s complex in central Greece, the company said in a statement Thursday, after reaching a final investment decision.
The price of gallium, used in semiconductors and advanced technology, has risen after China blocked exports of several niche metals to the US last month amid rising trade tensions. The Asian nation accounted for 98% of global gallium production in 2023, according to the U.S. Geological Survey.
Metlen said its investment enables Europe to completely substitute gallium imports. The metal is essential in sectors including integrated circuits used in computing and telecommunications.
The decision to invest in the production of the three metals “strengthens Europe’s self-sufficiency in critical raw materials and bolsters Greece’s strategic position on the global landscape,” Chief Executive Officer and Chairman Evangelos Mytilineos said in the statement.
Also see: Tiny But Vital Metal Markets Rush to Adjust to Chinese Clampdown
The investments aim to achieve annual production capacity of 50 metric tons of gallium, while also increasing by 46% the capacity for alumina output to 1,265,000 tons and reaching 865,000 tons for bauxite. All three are included in the European Union’s list of critical raw materials.
The production, valued at around €1 billion, will be exported to European and North American markets, Metlen said.
Also see: Greece’s Metlen Files Draft London Listing Prospectus
Startup is scheduled for 2026 for bauxite, with alumina and gallium production beginning gradually from 2027 and full-scale operation by 2028. The project recently received the EU’s sovereignty seal, recognizing its significant contribution to the EU’s self-sufficiency in critical raw materials, Metlen said.
The investment also meets the criteria of the EU’s Temporary Crisis and Transition Framework, implemented to support the bloc’s economy in the aftermath of Russia’s full-scale invasion of Ukraine.
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