Metlen Energy & Metals SA is investing €296m in the European Union’s first gallium production line.
The decision to advance gallium production in the EU follows China’s ban on exports of the critical mineral to the US, encouraging Western nations to seek their own supplies.
The project will be integrated with bauxite mining and processing into alumina at Metlen’s complex in central Greece.
Gallium and its uses
Gallium is a soft, silvery-white metal that is liquid at room temperature. It is the 32nd most abundant element in the Earth’s crust.
Gallium arsenide has a similar structure to silicon and is a useful silicon substitute for the electronics industry. It is an important component of many semiconductors. It is also used in red LEDs (light-emitting diodes) because of its ability to convert electricity to light.
Gallium nitride is also a semiconductor. It has particular properties that make it very versatile. It has important uses in Blu-ray technology, mobile phones, blue and green LEDs and pressure sensors for touch switches.
Gallium readily alloys with most metals. It is particularly used in low-melting alloys.
It has a high boiling point, which makes it ideal for recording temperatures that would vaporise a thermometer.
Strengthening independent gallium production in the EU
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.
China 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. This metal is essential in sectors such as 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,” Melten’s Chief Executive Officer and Chairman Evangelos Mytilineos said in a statement.
Production is set to ramp up significantly
The investments aim to achieve an annual production capacity of 50 metric tonnes of gallium while also increasing by 46% the capacity for alumina output to 1,265,000 tonnes and reaching 865,000 tonnes for bauxite.
All three of these metals are included in the European Union’s list of critical raw materials.
Their production, valued at around €1bn, will be exported to European and North American markets.
The 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, recognising its significant contribution to the EU’s self-sufficiency in critical raw materials.
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.
