Bauxite, alumina, and Gallium: Metlen’s €295.5M vision for Europe’s autonomous economic future

Metlen Energy & Metals, an Athens-listed group, has asserted a substantial investment of 295.5 million euros aimed at the development of an incorporated bauxite, alumina and gallium production line.

Image Source: https://www.metlengroup.com/

The investment was approved on January 16, 2025, during the joint session with the enterprise’s Capital Allocation Committee (CAC) and is going to be for the historic Aluminium of Greece plant in Agios Nikolaos, Viotia.

Evangelos Mytilineos, Metlen President and CEO stated: “Metlen’s decision to proceed with the implementation of a new, emblematic industrial investment for the production of bauxite, alumina and gallium strengthens Europe’s self-sufficiency in critical raw materials, as well as Greece’s strategic position on the world map. It also shields European industry from external dependencies. We demonstrate in practice our commitment to innovation, growth, and the circular economy while firmly confirming that Metlen can play a leading role in the transition to a more ‘green’ and resilient industrial production.”

Evangelos Mytilineos (Image Source: https://www.metlengroup.com/)

As noted in the company’s statement, the investment strategy seeks to accomplish a cumulative production ability (on an annual basis) of 2 million tonnes of bauxite, 1,265,000 tonnes of alumina (from 865,000 tonnes at present) and 50 tonnes of gallium (for the first time). All three of these substances are enlisted as Critical Raw Materials for the European Union.

Gallium, a by-product of certain grades of bauxite (including those from Greece) during their refining into alumina, has its production concentrated almost entirely in China. Recently, China’s decision to impose restrictions on gallium exports in July 2023 brought forth the West’s vulnerability and the pressing need to diversify supply sources.

The company has further highlighted — following the investment in Metlen, European gallium imports have potentially been restored, particularly enhancing Europe’s judicious autonomy. This is vital to reducing reliance on third countries to support the production of critical technologies across a comprehensive range of applications, from energy transition to defence. Notable examples include integrated systems for IT and telecommunications, light-emitting diode (LED) lamps, and permanent magnets, among others.”

It is noted that the production of these three critical materials—bauxite, alumina, and gallium—currently valued at approximately €1 billion, is intended for export to Europe and North America.

The investment will also incorporate new, environmentally friendly technologies to reduce the facility’s carbon footprint. Furthermore, synergies with Metlen’s Energy Sector will make sure that energy costs are fully sustainable.

The noteworthy investment has been awarded the STEP SEAL, a mark of excellence by the European Commission, recognising its significant contribution to the Union’s autonomy in critical raw materials (CRM).

The projects are expected to be completed with bauxite production starting in 2026 and alumina and gallium production commencing progressively from 2027, reaching full-capacitated operation by 2028.