This landmark project, set to be developed in Agios Nikolaos, Boeotia, within the boundaries of the historic "Alouminion of Greece" factory, represents a milestone in the metallurgy industry. It will significantly boost production capacity while introducing Gallium, a critical material for Europe's future, into industrial production.
The €295.5 million investment project aims to achieve an annual production capacity of 2 million tons of bauxite, 1.265 million tons of alumina (up from 865,000 tons today), and 50 metric tons of Gallium (a first for Europe). All three of these materials are included in the European Union’s list of Critical Raw Materials (CRMs).
The total capital expenditure (Capex) includes the following key investments:
- Development of research and new bauxite mining reserves,
- Construction of new facilities and mechanical equipment for the Gallium production line,
- Expansion and modernization of alumina production facilities,
- Energy supply infrastructure for the industrial plant,
- Port expansion and upgrades,
- Other road infrastructure and flood protection works.
Evangelos Mytilineos, Chairman and CEO of METLEN, commented: “METLEN’s decision to proceed with this new landmark industrial investment in bauxite, alumina, and Gallium production strengthens Europe’s self-sufficiency in critical raw materials and reinforces Greece’s strategic position on the global map. It also fortifies European industry against external dependencies. We are demonstrating our commitment to innovation, sustainable development, and the circular economy, while also affirming that METLEN can play a leading role in the transition to a greener and more resilient industrial production model.”
Regarding Gallium, it is important to note that it is a by-product of certain bauxite qualities (including those from Greece) during the refining process into alumina, with almost all of its production currently taking place in China. However, China’s decision to impose restrictions on Gallium exports (July 2023) highlighted the vulnerability of the West and the need for diversification in supply sources.
With METLEN’s investment, European imports of Gallium will be fully replaced, significantly boosting Europe’s strategic autonomy. This is critical to reducing dependence on third countries and ensuring the production of critical technologies spanning a wide range of industries, from energy transition to defense. Notable applications include:
- Integrated systems used in IT and telecommunications,
- LED lighting,
- Permanent magnets, among others.
It is also worth noting that the production of these three critical materials (bauxite, alumina, and Gallium, currently valued at approximately €1 billion) is intended for export to countries in Europe and North America.
This pioneering investment will also introduce new, environmentally friendly technologies that will reduce the plant’s carbon footprint. Additionally, through key synergies with METLEN’s Energy Division, the energy costs will remain fully sustainable.
For this investment, METLEN has submitted an investment dossier to the National Strategic Investments Law, and the project meets the criteria of the "Temporary Crisis and Transition Framework" for state aid to support the economy following Russia’s invasion of Ukraine.
Finally, the investment recently received the STEP SEAL ("Seal of Excellence") from the European Commission, recognizing its significant contribution to the Union’s autonomy in critical raw materials.
METLEN is committed to keeping the investment community informed about the next stages of the project. The completion of the works and the start of production are expected for bauxite by 2026, and for alumina and Gallium progressively from 2027, with full operations commencing in 2028.
