METLEN’s gallium deal marks strategic breakthrough for Europe’s critical minerals ambitions

The commercial agreement signed by METLEN with a leading U.S. technology company for the supply of gallium marks the beginning of a new growth cycle for the Greek group’s metals business and underscores the strategic importance of its investment in critical raw materials.

The deal also highlights the swift efforts by the United States to secure supplies of critical minerals such as gallium, a key material for the energy, technology and defense sectors. It is viewed as an agreement of significant geopolitical and industrial importance.

“It is only the beginning and, for the first time in METLEN’s history, one of our metallurgical products has attracted such strong interest from leading industrial economies worldwide,” METLEN Executive Chairman Evangelos Mytilineos said.

“This reflects both the strategic importance of gallium and the confidence of leading international technology companies in the quality and reliability of our material, which has already undergone extensive certification and evaluation testing,” he added.

Europe-U.S. supply chain

METLEN said it is the first company in Europe to establish integrated gallium production and the first to secure a commercial agreement for European-produced gallium, positioning Greece and Europe at the forefront of a new strategic industrial value chain.

The agreement is effectively the first major commercial gallium supply deal between a European producer and a leading U.S. technology company.

The achievement follows years of research and innovation investments by the company’s R&D teams at the Aluminium of Greece industrial complex under M Metals’ newly established Critical & Rare Metals division.

Long-term supply agreement

The financial terms of the agreement remain confidential.

However, the deal covers approximately 25% of the annual output of METLEN’s new gallium production facility in Boeotia, equivalent to about 12.5 metric tons, or 12,500 kilograms, out of the plant’s targeted annual production of 50 metric tons.

Construction of the expanded production facilities is scheduled in phases. The bauxite expansion is expected to be completed in 2026, while alumina and gallium production will begin gradually from 2027, with full commercial operations targeted for 2028.

The investment, worth 295.5 million euros, has been included among the 47 flagship projects under the EU’s Critical Raw Materials Act (CRMA), aimed at reducing Europe’s dependence on imported critical minerals and strengthening the resilience of the bloc’s industrial supply chains.

The project has also secured 90 million euros in financing from the European Investment Bank under the REPowerEU initiative.

Scope for additional agreements

Whether the share of production allocated to the U.S. customer will increase beyond the initial 25% will depend on the evolution of the agreement, future demand and international competition.

According to Mytilineos, METLEN has already received expressions of interest for its gallium from industrial companies in the United States, Japan and South Korea, while European customers are also expected to follow.

China currently controls more than 80% of global gallium production, while Europe relies on imports for around 98% of its supply.

METLEN says its planned production will reshape the European market by offering competitively priced gallium produced to European quality standards.

Strong market outlook

The agreement comes as gallium prices continue to rise. Current market prices range between approximately 2,269-3,250 U.S. dollars per kilogram.

Industry experts expect demand to remain strong over the long term, with major technology companies prepared to commit substantial capital to secure reliable supplies of the metal, which is essential for the production of advanced technology products.

Analysts see higher earnings potential

Analysts say the long-term agreement with a leading U.S. technology company significantly improves METLEN’s earnings and valuation prospects compared with previous forecasts.

They also expect the deal to be followed by a series of additional commercial agreements that could further enhance the company’s strategic position.

According to analysts, the value of METLEN’s new gallium business extends beyond higher commodity prices, highlighting the company’s competitive advantage in producing critical metals at competitive costs while maintaining high quality standards.

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