Europe's First Gallium Facility Wins Backing

Written by Martin Lynch, European News Editor for IIR News Intelligence (Galway, Ireland)

Summary

The European Investment Bank (EIB) has invested in its first gallium production facility as part of Europe's efforts to create more strategic autonomy in critical raw materials.

Funding for Greek Gallium Project

The European Investment Bank (EIB) has announced funding of 90 million euro (US$106 million) for two critical minerals projects in central Greece. 

It is the first time that the financial arm of the European Union (EU) has invested in a planned gallium production facility, and it stated that the project will strengthen EU supply of critical raw materials essential for the green and digital transitions. 

The Projects

The funding has been awarded to METLEN Energy & Metals, for two projects at the company's historic Aluminum of Greece industrial complex, in Central Greece. The money will be spent to modernize the existing bauxite mining operations - which are key for aluminum production - and the development of a new gallium production facility. Gallium is a byproduct of bauxite and is crucial for the manufacture of high-speed, energy-efficient semiconductors, LEDs, solar cells and 5G/radar technologies. It is listed as one of 17 Strategic Raw Materials by the EU. METLEN's bauxite mining operations are located in the Parnassus-Giona area, and its alumina and aluminum industrial complex is located in Agios Nikolaos, Viotia, where the new gallium production facility will be developed. The modernisation is expected to create additional jobs while reducing the environmental footprint of mining and processing activities with more 'sustainable and modern industrial practices.'

EIB Vice President Yannis Tsakiris said: "This investment is a landmark for Europe's industrial and strategic autonomy. By supporting METLEN, the EIB is backing Europe's first EIB-financed gallium production project, strengthening the security of supply of critical raw materials that are indispensable for the green and digital transitions. It is a clear example of how European financing can support industrial innovation, regional development and climate action at the same time."

Evangelos Mytilineos, executive chairman of METLEN, stated: "We are implementing a landmark project that decisively strengthens Europe's self-sufficiency in critical raw materials by bringing gallium into industrial production within the European Union for the first time, while reinforcing regional cohesion and Greece's industrial base."

Europe's Critical Minerals Problem

Europe is heavily reliant on third countries--especially China--with more than 90% of its supply of certain minerals coming from a single third country. Today, around 71% of the EU's gallium comes from China along with 97% of its magnesium supply. Turkey supplies 98% of its borate, and South Africa provides 71% of the EU's platinum-group metals. As for lithium, used in electric vehicle (EV) and energy-storage batteries, Europe will need up to 18 times more lithium by 2030 and up to 60 times more by 2050. 

The Solution

In 2024 it enacted the Critical Raw Materials Act (CRMA), setting out a series of comprehensive actions to ensure the EU's access to "a secure, diversified, affordable and sustainable supply of critical raw materials." That list identifies 34 critical raw materials and within that, 17 specific strategic raw materials (SRMs) like gallium and lithium, where demand is rocketing. Over the past 18 months, the EU has been busy inking deals with more 'politically friendly' nations to invest in their mining and mineral processing industries. At the end of 2025, the European Commission (EC) fast-tracked a plan to help Europe combat its overreliance on China for critical minerals. The RESourceEU Action Plan is similar to the REPowerEU strategy that has helped to cut reliance on Russian oil and gas. With initial funding of 3 billion euro (US$3.5 billion) for its first year, it will fast-track 'concrete projects that can provide alternative supplies in the short term.' It will also start joint purchasing of materials such as rare earth elements, cobalt or lithium, to reduce 'strategic dependencies' on China. This year it is expected to establish a European Critical Raw Materials Centre to provide market intelligence as well as steer and finance strategic projects. For additional information, see March 25, 2024, article - Europe Green Lights Critical Raw Materials Act and December 15, 20225, article - Billions of Euro for Europe's Critical Raw Materials Plan.

What Kinds of Projects?

The EC granted immediate financial support for priority projects, such as Vulcan Energy Resources' lithium extraction project in Germany and the Greenland Resources' Malmbjerg molybdenum project in Greenland. Industrial Info is tracking three Malmbjerg-related projects, worth US$870 million in investment, alongside 15 Vulcan projects related to its lithium plans in Germany's Upper Rhine Valley worth more than US$1.8 billion.

Key Takeaways

• The European Investment Bank (EIB) has invested in its first gallium production facility in Greece.
• The project is part of the European Union's (EU's) efforts to cut its heavy reliance on China for critical minerals and rare earths.
• The European Commission announced 3 billion euro (US$3.5 billion) funding in December to back its RESourceEU Action Plan.

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