METLEN Energy & Metals has secured a long-term supply agreement covering approximately 25 per cent of planned annual gallium production from its Aluminium of Greece complex in Agios Nikolaos, giving the Greek critical-minerals project a commercial customer before production starts.
The buyer is an unidentified leading US technology company. METLEN has not disclosed the customer’s identity, pricing arrangements, contract duration or product specifications, leaving the financial value of the agreement undisclosed. The project is designed to produce 50 tonnes of gallium annually, meaning the contracted volume would amount to approximately 12.5 tonnes per year once planned capacity is reached. Gallium production is scheduled to start in 2027, with full-scale output expected in 2028.
Integrated alumina and gallium development
The gallium project forms part of a broader €295.5 million investment programme at Aluminium of Greece. The investment is expected to raise annual bauxite production to approximately 2 million tonnes and increase alumina capacity from 865,000 tonnes to 1.265 million tonnes per year. Gallium will be recovered as a by-product of alumina refining rather than through a dedicated mining operation. METLEN’s existing industrial platform allows the company to process gallium contained in Greek bauxite within the Bayer-process stream.
The development therefore relies on established power, port, processing and technical infrastructure at the Aluminium of Greece complex. A separate gallium mine and standalone refinery are not required for the planned production route. The integrated model is also linked to the company’s existing bauxite supply and alumina-refining operations, allowing gallium recovery to be incorporated into an established metallurgical process.
EU and EIB support
The project has been designated a Strategic Project under the EU Critical Raw Materials Act. It has also received approval for approximately €118 million in grants and tax incentives, alongside €90 million of European Investment Bank financing. Together, those instruments represent approximately 70 per cent of the disclosed investment budget, although the grants, incentives, EIB financing and METLEN equity carry different conditions and financial characteristics.
The long-term US supply agreement adds a commercial component to that public support. The customer commitment provides evidence of market demand and follows technical qualification work required for gallium used in technology-related applications.
Gallium supply remains concentrated
China accounts for the overwhelming majority of primary gallium supply and introduced export controls on the metal in 2023. Gallium compounds including gallium nitride and gallium arsenide are used in radar, satellite communications, radio-frequency systems, power electronics, data-centre equipment and advanced defence applications.
The unidentified US technology buyer has committed to approximately 12.5 tonnes of annual supply, potentially creating a qualified reference customer for METLEN as the company seeks additional buyers for its remaining planned production. The commercial economics of the agreement remain difficult to assess because METLEN has not disclosed whether pricing will be fixed, indexed or subject to minimum-purchase commitments. The company has also not stated whether the contract contains mechanisms protecting either side against changes in production costs.
Gallium trading is less transparent than markets for major industrial metals, with prices affected by purity, physical form, customer qualification and Chinese export availability. The agreement gives METLEN a customer for one-quarter of planned output, while the company continues to develop the remaining production capacity within its broader bauxite, alumina and aluminium investment programme.
