Five kilos is a quantity that in terms of industrial production seems negligible. And yet, the first 5 kilos of gallium that Metlen announced that it had produced in the previous days, with a post on Evangelos Mytilineos’ social media, signal something much greater than a number on the scale.
Gallium is not an ordinary metal. It is one of the “invisible” materials of modern technology, essential for semiconductors, telecommunications, high-performance photovoltaics, LEDs and applications in the defense industry. It is used in infinitesimal quantities, but its absence is enough to stop the production and development of important technologies.
The crack from China
To date, Europe has been almost entirely dependent on imports, mainly from China. And this is where the small pilot production of the Greek industry in Aspra Spitia, Boeotia, where the facilities of Aluminum of Greece are located, acquires strategic and economic weight, implementing an investment of approximately 300 million euros. The full industrial development and production largely solves the problem of dependence on third countries and signals that the production of gallium in Europe is not a plan on paper, but is beginning to take shape.
In July 2023, when China’s restrictions on the exports of gallium and germanium (another equally critical metal) came into effect, they caused immediate disruptions in global supply chains, with gallium prices soaring by over 40% in Europe.
According to an analysis by the Atlantic Council, a respected independent think tank with close access to policy circles in Washington, the issue of critical raw materials is becoming a national security issue for the United States.
Gallium, although used in minimal quantities, is essential for radars, guided weapons, satellites and advanced electronic warfare systems. The United States has no domestic production or strategic stockpile, making it particularly vulnerable to supply constraints.
It consumes about 20 tons of gallium per year, a small amount but critical to its defense and technological base. Although gallium is present in trace amounts in industrial streams such as alumina and zinc, without organized recovery it is lost as waste. China controls almost 99% of primary production, turning export restrictions into a strategic lever of pressure and making immediate action imperative before the next crisis.
In this light, Metlen breaks the shackles. “Domestic gallium production is an extremely important development,” Dionysis Goutis, the director general of the Hellenic Geological and Mining Research Authority (EAGME), tells “THEMA,” emphasizing that it is an investment with a clear geostrategic footprint.
Neither Europe, he says, nor the United States has gallium production, leaving the West essentially dependent on Asia for a metal with a huge range of applications. Forecasts for the EU’s annual needs indicate that with the new production capacity in 2028, it will be able to cover a significant part or even all of the demand, estimated at 50 metric tons.
The importance of Greek production
Such a quantity can be covered by the production line in Boeotia. “We are talking about a relatively small quantity, practically two trucks,” points out the head of EAGME, underlining its strategic importance. There is no gallium ore. This metal is “hidden” in minimal quantities in other minerals, mainly in bauxite from which aluminum is produced and to a lesser extent in zinc ores.
During the processing of these materials, gallium is concentrated in the liquid residues of the process and from there it is isolated with special purification and processing methods. “Its production is a great success not only for this particular company, but also for the Greek industry as a whole.”
And he explains why: Securing gallium production allows the European Union to reduce its dependence on geopolitical pressures and create the conditions for new investments in cutting-edge technologies. “You can’t decide to invest in 5G or in circuits if you’re not sure you’ll have access to gallium,” notes Mr. Goutis.
Among expensive commodities
Gallium is one of the so-called commodities, that is, standardized raw materials whose value is determined by international markets, such as oil, natural gas, copper or aluminum. Its limited production, which is also geographically concentrated, makes it rare. Thus, even small quantities acquire disproportionate importance when geopolitical balances change.
It is no coincidence that the announcement on gallium production comes
while the European Union is trying to shield itself through the Critical Raw Materials Act. The CRMA is the European legislative response to the EU's dependence on third countries for critical raw materials, such as gallium, lithium and rare earths.
The plan foresees that by 2030 Europe should cover at least 10% of its needs from domestic mining, 40% from processing within the EU and 25% from recycling, while it also sets a limit of dependence on a single country at 65% for each material.
In this context, the first 5 kg of gallium at Metlen's facilities act as a kind of confirmation that European policy can stand on its own two feet and find factory implementation.
The real question, of course, is not whether the first sample can be produced. It is whether Europe will support the scaling up from 5 kg to 50 tonnes with financial tools and, ultimately, a stable and reliable supply chain. Something that has not yet been seen against the rhetoric of de-reliance on China.
650% rally in 7 years
The strategic importance of gallium is also clearly reflected in the impressive rally in its price. Today, its value is set at $2,060.40 per kg, moving at historically high levels. This price is based on international spot indices for high-purity gallium, which is used in industrial and technological applications. On an annual basis, the increase reaches 119%, reflecting the tightness of supply and the geopolitical uncertainty surrounding its supply.
The long-term picture is even more impressive. Since the beginning of 2021, the price of gallium has increased by 387%, while compared to January 1, 2020, the total increase is 590%. During the same period, the S&P 500 index, which tracks the 500 largest companies in the US economy, increased by 110%, highlighting the diversification of critical raw materials from traditional stock markets. If compared to 2018, when gallium was trading at $ 274 per kilogram, the total increase reaches 650% in seven years.
Wide range of applications
Gallium does not have the shine of gold, nor the recognition of lithium. And yet, without it, many of the systems that support modern technological reality simply would not work. In everyday life, gallium does not appear as a metal, but as a key component of advanced materials.
Thanks to it, modern mobile phones are faster, more energy-efficient and capable of handling huge volumes of data. The same applies to the antennas of 5G networks, which require high-performance and low-loss materials. Gallium also plays a particularly important role in the energy transition.
It is used in advanced, high-efficiency photovoltaic panels, which are used in satellites and special installations where space is limited and efficiency is critical. The International Energy Agency recognizes that such materials play an increasingly important role in reducing losses and improving overall energy efficiency.
At the same time, gallium is considered absolutely critical for defense and aerospace. It is used in radars, communication systems, satellites and high-precision equipment. For this reason, both the United States and the European Union have included it in the lists of materials of national and strategic importance.
The problem is that there are no easy alternatives. Gallium recycling remains limited, while the development of new production units requires large investments, know-how and time. Thus, this metal remains one of the most characteristic examples of how technological progress, the green transition and defense adequacy depend on materials that most consumers do not even know exist.
Within this context, investments such as Metlen's take on an importance that goes beyond the limits of a corporate strategy. They touch the core of the European debate on self-sufficiency, security of supply and, ultimately, on what real dominance means in a world where power is not measured only in technology, but also in raw materials.
The Greek “player”
In this environment of heightened geopolitical sensitivity and limited alternatives, the European Union did not stop at identifying the problem. It looked, about two years ago, for specific industrial players within Europe that could translate the strategy for critical raw materials into real production. Somewhere along the way, Brussels’ gaze turned to Metlen – and not by chance.
The company has a vertically integrated industrial activity that extends from bauxite mining to alumina and aluminum production. This production model enables it to recover gallium
as a by-product of the existing industrial process without requiring the creation of a new mining activity. In this way, Greece emerges as a key link in the European effort for strategic autonomy in critical raw materials.
Flagship investment
Metlen will invest 295 million euros, with financing of 90 million from the European Investment Bank, with the aim of creating a gallium production unit, fully integrated into the existing alumina industrial chain. The first step has already been taken as the first 5 kilograms of gallium were produced in the framework of a pilot program implemented at the facilities of the Aluminum of Greece.
Mr. Mytilineos has not hidden his interest in other critical raw materials, with germanium and scandium, which are also by-products of bauxite, appearing as the next realistic targets. For these two metals, the company intends to launch two new pilot programs, as it did with gallium.
The pilot stage acts as a testing ground for the technology and processes for recovering the metal, allowing for the gradual optimization of production before full commercial development, which for gallium is in 2028.
Mr. Mytilineos knows that gallium will not be sold as a simple metal. That is why he is in open communication with the European Commission, in an effort to integrate future production into institutionally protected European security of supply schemes so that it is treated not as a commodity, but as a strategic material of critical importance for the Union’s industrial and defense base.
At the same time, he has made it clear that interest extends to the other side of the Atlantic, where gallium is gaining increasingly greater geopolitical value for the reasons we have explained. Given that Metlen’s annual production is expected to reach 50 tons and based on current gallium prices, its value is already estimated at close to 100 million euros per year.
Government sources note that gallium production in Greece is part of a broader strategy to strengthen the country’s industrial activity in recent years, with an emphasis on high-value-added sectors, such as manufacturing and the mining industry. The inclusion of the investment in the flagship investments is another recognition of the importance and value of the activity for Greek industry.
