METLEN Energy & Metals announced on Thursday an investment of 295.5 million euros for the development of an integrated bauxite, alumina and gallium production line. Today, the final investment decision was taken for the project to be implemented in Agios Nikolaos, Boeotia, within the boundaries of the "Aluminium of Greece" factory.
According to the company's announcement, the investment plan aims to achieve a total production capacity (on an annual basis) of 2 million tons of bauxite, 1,265,000 tons of alumina (from 865,000 tons today) and 50 MT of gallium (for the first time). All three of these materials are included in the list of Critical Raw Materials of the European Union.
The project includes the following sub-investments:
- Development of research and new bauxite mining deposits,
- New building facilities and mechanical equipment for the development of the gallium production line,
- New building facilities and mechanical equipment for the expansion and modernisation of alumina production capacity,
- Energy supply projects for the industrial unit,
- Expansion and upgrading of the port,
- Other road infrastructure and flood control projects
Evangelos Mytilineos, President and CEO of METLEN, stated:
"METLEN's decision to proceed with the implementation of a new, emblematic industrial investment for the production of bauxite, alumina and gallium strengthens Europe's self-sufficiency in critical raw materials, as well as Greece's strategic position on the world map. It also shields European industry from external dependencies. We demonstrate in practice our commitment to innovation, growth and the circular economy, while at the same time firmly confirming that METLEN can play a leading role in the transition to a more 'green' and resilient industrial production."
As for gallium, it is noted that it is a by-product of certain grades of bauxite (including Greek ones) during their refining into alumina, with its production taking place almost exclusively in China. However, China's decision to impose restrictions on gallium exports (July 2023) highlighted the vulnerability of the West, as well as the need to diversify supply sources.
The company also emphasised the following:
"Following the investment of METLEN, European gallium imports are fully restored, significantly boosting Europe's strategic autonomy, which requires reducing dependence on third countries to ensure the production of critical technologies spanning a wide range of production, from energy transition to defence.
Indicatively, these include:
a) Integrated Systems used in IT and telecommunications,
b) Light-emitting diode (LED) lamps and
c) Permanent magnets, etc.
It is noted that the production of all three of these critical materials (bauxite, alumina and gallium, currently worth around 1 billion) is intended for export to countries in Europe and North America.
The investment will also introduce new and environmentally friendly technologies that will reduce the unit's carbon footprint. At the same time, through synergies with METLEN's Energy Sector, the energy cost will become completely sustainable.
It is noted that the investment recently received the STEP SEAL, a seal of excellence from the European Commission, as it was deemed to significantly contribute to the Union's autonomy in critical raw materials (CRM).
The completion of the projects and the start of production are scheduled for bauxite in 2026, and for alumina and gallium, gradually from 2027, with full operation in 2028.
