METLEN Energy & Metals has taken the final investment decision (FID) on a €295.5m ($304.1m) investment in bauxite, alumina and gallium production.
The investment was approved on 16 January 2025 in a joint session with the company’s Capital Allocation Committee. It will be implemented at the historic Aluminium of Greece plant in Agios Nikolaos, Viotia.
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This project aims to enhance production capacity and introduce gallium into industrial production for the first time.
The capital expenditure includes developing new bauxite deposits, constructing gallium production facilities, expanding alumina production, and upgrading energy and port infrastructure.
The investment plan targets an annual production capacity of 2 million tonnes (mt) of bauxite, 1.26mt of alumina and 50 metric tonnes of gallium.
The production of these vital materials, valued at approximately €1bn, will be shipped to markets in Europe and North America.
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By GlobalDataThe investment also incorporates environmentally friendly technologies to reduce the carbon footprint and aims to achieve sustainable energy costs through synergies with METLEN’s energy operations.
METLEN chairman and CEO Evangelos Mytilineos said: “The decision by METLEN to proceed with the implementation of a new, landmark industrial investment in the production of bauxite, alumina and gallium, strengthens Europe’s self-sufficiency in critical raw materials and bolsters Greece’s strategic position on the global landscape.
“Moreover, it shields the European industry from external dependencies. We are proving our commitment to innovation, sustainable development and circular economy, while reaffirming METLEN’s role as a leader in the transition toward greener and more resilient industrial production.”
The completion of works and production start-up is scheduled for 2026 for bauxite, with alumina and gallium production beginning gradually from 2027 and full-scale operation by 2028.
Gallium, a by-product of certain bauxite qualities, is predominantly produced in China.
However, China’s export restrictions on gallium, imposed in July 2023, have underscored the need for Europe to diversify its supply sources.
METLEN’s investment aims to eliminate Europe’s reliance on gallium imports, enhancing strategic autonomy.
The company has submitted the project under Greece’s Strategic Investments Law. The investment also meets the Temporary Crisis and Transition Framework criteria.
The project has received the European Commission’s STEP SEAL, recognising its contribution to EU self-sufficiency in critical raw materials.
