METLEN Executive Chairman, Evangelos Mytilineos, has given an interview to the Financial Times and journalist Camilla Hodgson, highlighting METLEN’s ability to meet the entirety of current European gallium demand through its planned production capacity, while also addressing what he described as a European policy paradox: although Europe seeks to reduce its dependence on China for critical raw materials, it has yet to establish the demand framework and market mechanisms required to absorb and support domestic production.
At the centre of the discussion is gallium, a strategic raw material for which METLEN is planning annual production of up to 50 tonnes, a volume that, according to the company, could cover the entirety of current European demand. Initial production is expected to commence next year.
A key competitive advantage for METLEN lies in its exceptionally low production cost, currently below $300 per kilogram, compared with European market prices exceeding $3,000 per kilogram. Looking ahead, METLEN aims to further reduce production costs to approximately $100 per kilogram, strengthening its competitiveness and resilience even in the event of increased Chinese supply and downward pressure on global prices.
At the same time, Mr Mytilineos stressed that while the European Union is actively pursuing greater strategic autonomy and reduced dependence on China, it has not yet put in place the necessary financing instruments, demand incentives and long-term offtake commitments that would enable European production to remain within the region. As he noted, many European companies continue to favour lower-cost Chinese material, while countries such as the United States and Japan are moving more decisively to secure and support their domestic supply chains.
Notably, in the absence of sufficiently organised European demand, international markets appear more prepared to absorb METLEN’s future production. Approximately 25% of the planned output has already been contracted to a US technology company, while two additional supply agreements with non-European buyers are currently under consideration.
According to the Financial Times, gallium is a strategically important critical raw material with essential applications across semiconductors, artificial intelligence, satellites, radar technologies and defence systems. The METLEN case therefore highlights a broader challenge for Europe: while the continent possesses the capability to competitively produce critical raw materials, it must establish the necessary conditions, including stable demand, financing mechanisms and long-term commercial commitments, to ensure that this production translates into genuine strategic autonomy.
Source: Europe risks losing race for key high-tech metal, says FTSE 100 CEO
