EIB Backs METLEN Gallium Production in Greece

Key takeaways

• The European Investment Bank (EIB) approved €90 million to support METLEN Energy & Metals investments tied to bauxite extraction and a new gallium production facility in Central Greece.
• Gallium is a critical upstream input for compound semiconductors (notably GaN and GaAs) used across RF front ends, radar, and high-efficiency power conversion.
• METLEN’s broader €295.5 million investment plan is designed to scale production across bauxite, alumina, and gallium, targeting 2 million tpa of bauxite, 1.265 million tpa of alumina, and 50 tpa of gallium once fully ramped.
• The company aims to initiate gallium production in 2027 and ramp to 50 tonnes per year by 2028, enough to satisfy most European demand for this critical material

On January 15, 2026, the European Investment Bank (EIB) approved €90 million in financing for METLEN Energy & Metals to support investments at the company’s Aluminium of Greece industrial complex in Central Greece. The package covers the modernisation of bauxite mining operations and development of a new gallium production facility, which the bank framed as a step toward strengthening Europe’s autonomy in critical raw materials.

The EIB noted the financing is provided under the REPowerEU framework and aligned with the EU Critical Raw Materials Act (CRMA), aimed at reducing import dependence and improving the resilience of European industrial value chains

The project spans two main implementation sites in Central Greece:

• • Parnassus–Giona area: METLEN’s bauxite mining operations
  • Agios Nikolaos, Viotia: METLEN’s alumina and aluminium industrial complex (Aluminium of Greece), where the gallium facility will be developed

METLEN has previously announced a €295.5 million integrated investment plan spanning bauxite, alumina, and gallium, with targeted annual capacities of ~2 million tonnes of bauxite, 1,265,000 tonnes of alumina, and 50 metric tons (MT) of gallium. The company aims to launch gallium production in 2027 and ramp to 50 MT per year by 2028.

An EIB vice-president described the investment as a “landmark for Europe’s industrial and strategic autonomy,” helping secure materials deemed “indispensable for the green and digital transitions.”

METLEN added that the project has been designated a CRMA Strategic Project, enabling faster permitting and improved access to institutional backing.

Gallium and Geopolitics

Gallium is not mined directly but recovered as a by-product of bauxite refining, making supply inherently constrained and geopolitically sensitive. Large-scale refined gallium production has historically been concentrated in Asia, particularly China, which has at times controlled the vast majority of global output and imposed export restrictions that tightened supply.

Because the global gallium market is relatively small, even tens of tonnes per year of new production can meaningfully shift supply-chain dynamics. This makes domestic production capacity a strategic imperative for both civilian and defense supply chains.

Gallium’s importance stems from its role in compound semiconductors:

• • Gallium Nitride (GaN): Critical for high-efficiency power conversion, including data-centre power supplies, EV chargers, and renewable energy inverters.
  • Gallium Arsenide (GaAs): Foundational in RF front-end modules, high-frequency communications, defense radar, and aerospace systems.

METLEN’s CEO highlighted the broader significance of the investment, stating it “decisively strengthens Europe’s self-sufficiency in critical raw materials by bringing gallium into industrial production within the European Union for the first time.

An EU official visit to Greece last year similarly underscored gallium’s role in advanced semiconductors and military radar systems, placing projects like METLEN’s at the center of Europe’s broader strategic autonomy push.

The EIB explicitly framed the financing as supporting Europe’s first EIB-financed gallium production project, strengthening the supply of materials it described as “indispensable for the green and digital transitions.”

Industrial and Market Impacts

1. De-risking Critical Supply Chains:

Long-cycle industrial projects like metal refining are inherently capital-intensive. EIB backing lowers financial risk and signals institutional priority, encouraging private capital to participate in strategic value chains.

2. Strengthening EU Autonomy:

Reduced import dependence helps insulate European high-tech and defense industries from supply curbs and geopolitical tensions, particularly amid tightening export policies in supplier countries.

3. Supporting Regional Growth:

The investment is expected to support job creation, regional development, and modernization of mining and processing infrastructure, reinforcing Greece’s industrial base.

4. Broader Supply Agreements:

METLEN has also entered long-term strategic agreements with Rio Tinto to secure bauxite supply and off-take arrangements for alumina, further anchoring its role in European metals and critical materials sectors