#Greece #Athens #Gallium #METLEN #Alumina

METLEN's Landmark Investment Announcement

METLEN Energy & Metals has made a significant stride in its commitment to advancing the metallurgy sector in Europe, specifically through a new investment plan amounting to €295.5 million. This was announced on January 16, 2025, during a joint session of the company's Metallurgy and Capital Allocation Committees. This grand initiative aims to enhance the production of three critical materials: bauxite, alumina, and gallium.

Located at the historic 'Aluminium of Greece' plant in Agios Nikolaos, Viotia, this large-scale investment is anticipated to dramatically increase production capacity. METLEN's plan aims to substantially elevate its annual output to an impressive 2 million tonnes of bauxite and 1,265,000 tonnes of alumina, an increase from the current production level of 865,000 tonnes. Crucially, the project also marks the first-time production of gallium, setting the cornerstone for Europe’s future supply chain in this essential element.

The shift to include gallium production is particularly strategic. Gallium is increasingly critical for various high-tech applications, including integrated circuits used in computing and telecoms, LEDs, and permanent magnets. Until now, Europe has heavily relied on imports of gallium, predominantly from China. However, METLEN's initiative aims to replace this dependence entirely, bolstering Europe’s self-sufficiency in strategic raw materials.

Chairman and CEO of METLEN, Evangelos Mytilineos, expressed confidence in the investment, stating, "This landmark decision not only strengthens Europe’s position regarding critical raw materials but also safeguards it against external dependencies. We are committed to driving innovation and adopting sustainable practices that emphasize a circular economy."

The ambitious investment plan encompasses several projects. This includes:

• - Developing new bauxite mining research and deposits,
• - Construction of new facilities for gallium production,
• - Expanding and modernizing alumina production capacity,
• - Enhancing energy supply infrastructure,
• - Upgrading port and road infrastructure.

Strategic Importance of Gallium Production

The strategic focus on gallium production aligns with the broader objectives of the European Union. With gallium classified as a critical raw material, METLEN’s investment directly responds to the vulnerabilities exposed by China's export restrictions on this vital metal, enacted in July 2023. By producing gallium locally, METLEN not only contributes to Europe’s industrial independence but also supports the goals of the European Commission to enhance self-reliance amidst global market fluctuations.

Environmental Responsibility and Sustainability

In addition to serving industrial and economic needs, this investment embraces environmental sustainability. METLEN plans to introduce state-of-the-art technologies that minimize the carbon footprint of its facilities. By integrating synergies with its energy sector, METLEN seeks to ensure energy costs are maintained sustainably, prioritizing eco-friendly practices.

Moreover, this industrial enhancement has received recognition from the European Commission through its STEP SEAL, highlighting its contribution to the EU's strategic framework. The project aligns with Greece's Strategic Investments Law and fits within the Temporary Crisis and Transition Framework to stabilize the economy in light of recent global events.

Looking Ahead

The anticipated timeline outlines the completion of bauxite production by 2026, with alumina and gallium production to commence gradually in 2027, aiming for full operational capacity by 2028. This strategic investment not only fortifies METLEN's market position but also reinforces Greece's prominence in the global metallurgy landscape.

With projected exports valued at approximately €1 billion to markets in Europe and North America, METLEN stands to play a pivotal role in the future of Europe’s critical raw materials supply chain. This pioneering step represents a significant leap towards a greener and more resilient industrial shift, marking a new chapter in METLEN’s dedicated pursuit of excellence in metallurgy and energy sustainability.