METLEN Energy & Metals is developing new gallium production capacity in Greece that could supply a significant share of European demand, but the company has warned that part of the output may be sold to markets outside Europe. The company is investing about €295.5 million at its Aluminium of Greece complex to establish annual gallium production of around 50 tonnes. The planned capacity is broadly comparable with current European gallium demand. Production is scheduled to begin gradually in 2027, with full-scale output targeted for 2028. The project has secured €90 million in financing from the European Investment Bank.
Overseas Offtake Commitments
METLEN Executive Chairman Evangelos Mytilineos said European customers were continuing to favour lower-priced Chinese gallium despite efforts to reduce dependence on concentrated overseas supply chains. The first major long-term commercial commitment for the planned production has come from outside the European market. In July, METLEN signed an agreement with a U.S. technology company covering about 25% of future gallium production.
The company has warned that a substantial portion of its planned Greek output could therefore be directed to buyers in the United States and Japan unless European customers commit to purchasing domestic production.
Gallium Supply Remains Concentrated
Gallium is used in semiconductors, telecommunications, defence systems and power electronics, as well as advanced applications involving compounds including gallium arsenide and gallium nitride. Global gallium supply remains heavily concentrated in China, which dominates primary production. China has also tightened export controls covering several strategic materials.
For METLEN, contracts with overseas buyers could reduce market risk and provide greater revenue visibility as the Greek project moves through its production ramp-up.
European Demand and Supply Security
The project highlights a gap between the development of European critical-mineral capacity and the ability of European manufacturers to secure the resulting material. Financing and permitting new production do not automatically ensure that output remains within Europe. If European buyers continue to prioritise lower short-term prices, production supported partly by European policy could instead be contracted to customers in other markets. The situation could increase attention on demand-side measures, including long-term procurement commitments, strategic stockpiling and incentives for European sourcing. With planned capacity of around 50 tonnes a year, METLEN’s Greek project could cover a large share of current European gallium demand.
