A planned gallium production facility in central Greece has secured a long-term supply agreement with a major U.S. technology company before commercial operations begin.
METLEN Energy & Metals announced on Wednesday that the agreement covers approximately 25 percent of the facility’s expected annual gallium production. The company did not identify the customer, and the financial terms remain confidential.
The company described the contract as the first major commercial gallium supply agreement between a European producer and a leading U.S. technology company. It also said this was the first agreement involving gallium expected to be produced in Europe.
Greece’s Gallium agreement covers one-quarter of planned output
The supply agreement gives the project a commercial customer before the facility enters production.
METLEN plans to produce approximately 50 metric tons of gallium annually once the facility reaches full capacity. The agreement therefore covers about one-quarter of the expected output, although the company has not disclosed annual delivery volumes, prices, or the duration of the contract.
According to METLEN, the material intended for the U.S. customer has already undergone qualification testing. The production method was developed through research conducted at the Aluminium of Greece industrial complex and by the company’s Critical & Rare Metals division.
Production planned for 2027
Gallium production is expected to begin gradually in 2027, with full-scale operations targeted for 2028.
The new facility will be developed at the Aluminium of Greece complex in Agios Nikolaos, Viotia. Related mining investments will take place in the Parnassus-Giona area of central Greece.
The wider project also includes the expansion and modernization of METLEN’s bauxite mining and alumina refining operations. At full capacity, the company plans to produce approximately 2 million metric tons of bauxite, 1.265 million metric tons of alumina, and 50 metric tons of gallium annually.
METLEN’s final investment decision in January 2025 estimated the cost of the program at €295.5 million. When the Greek government approved the strategic investment in May 2026, METLEN described the total investment as approximately €300 million. Enterprise Greece later placed the value of the approved project at €340 million.
Greek government approves state support
Greece’s Interministerial Committee for Strategic Investments approved the project in May 2026.
The investment became the first project included under the CISAF 6.1 state-aid program. METLEN expects to receive approximately €118 million through a combination of grants and tax incentives.
The government approval covers the development of gallium production capacity, the expansion of nearby bauxite mines, and upgrades to the alumina refinery.
Why Gallium is important
Gallium is generally recovered as a byproduct when certain types of bauxite are refined into alumina. It is not usually extracted from dedicated gallium mines.
METLEN already operates across the bauxite, alumina, and aluminum production chain. The planned project would integrate gallium recovery into the company’s existing industrial operations.
Gallium compounds are used in specialized semiconductors and electronic components. Applications include telecommunications equipment, integrated circuits, light-emitting diodes, radar, satellites, photovoltaic systems, and defense technologies.
The metal is also relevant to artificial intelligence infrastructure and advanced computing because of its use in high-performance and energy-efficient electronic systems.
Europe seeks alternative sources of gallium
Global gallium production remains heavily concentrated in China. Beijing introduced export restrictions on gallium and germanium in July 2023, increasing concerns in Europe and the United States about dependence on a limited number of suppliers.
The European Union has sought to expand domestic extraction and processing of critical raw materials through the Critical Raw Materials Act.
The European Commission designated METLEN’s integrated project as a Strategic Project under the legislation in March 2025. It was included in the Commission’s first group of approved European critical-material projects.
The designation can support faster permitting and improve access to public and private financing.
European Investment Bank supports Greece’s gallium project
The European Investment Bank approved €90 million in financing for the project in January 2026 under the REPowerEU framework. The financing will support the modernization of bauxite mining operations and the development of the gallium facility at the Aluminium of Greece complex.
The EIB said the investment was intended to strengthen European supplies of bauxite and gallium and reduce reliance on imports. The project has now received Greek government approval, European Commission recognition, EIB financing, and its first announced commercial supply agreement.
Production has not yet begun, and the facility must still meet its construction and operating schedule. If the project proceeds as planned, gallium production will begin in 2027 and reach its targeted capacity in 2028.
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