Evangelos Mytilineos, Executive Chairman of METLEN, was a keynote speaker at the 11th Financial Times Energy Transition Summit in London. In conversation with the FT’s energy correspondent Verity Ratcliffe, he discussed critical raw materials and METLEN’s strategic investment in gallium production; the synergies between Energy and Metals; the impact of high energy costs on European industry; and the geopolitical developments shaping Europe’s position in the world.
METLEN’s strategic investment in gallium production was at the centre of the discussion. Following the expansion currently under way, METLEN plans to reach production of 1.3 million tonnes of alumina and produce 50 tonnes of gallium, with commercial production scheduled to begin in the third quarter of 2027.
Explaining the rationale behind this investment decision, Mr Mytilineos noted that METLEN’s philosophy involves taking “calculated risks”, based on an assessment of both market conditions and geopolitical developments. When the final investment decision was taken, a crucial factor was China’s dominant position in global gallium production and the possibility of a significant increase in supply. As he explained, the Company’s view was that relations between China and the West were unlikely to return to complete normality. At the same time, the price of gallium has risen from below $500 per kilogram when the investment decision was taken to $3,500 per kilogram today, while METLEN is already considering germanium and scandium as the next critical metals to follow.
METLEN’s research and development capabilities have played a decisive role in the project. As Mr Mytilineos emphasised, the know-how required to extract gallium was developed in-house by the company’s R&D team. According to him, gallium production is primarily a matter of know-how rather than a particularly capital-intensive investment, provided that the necessary alumina production base is already in place.
Mr Mytilineos also highlighted the synergies between METLEN’s Energy and Metals businesses. As he explained, the gradual decline of long-term power contracts and rising energy costs in Europe led the company to develop robust energy production and energy management capabilities of its own. This strategy proved particularly important during the energy crisis, enabling METLEN to draw on a diversified energy portfolio to support both its smelter requirements and its growing energy business. In an environment of pronounced volatility, he stressed that anticipating and managing energy risk are critical to industrial competitiveness.
Turning specifically to natural gas and the rising cost of energy in Europe, he noted that METLEN monitors international markets on a daily basis through its specialist Energy Management team, adjusting its strategy to constantly changing conditions. He stressed that high gas prices are placing significant pressure on European industry, although the resulting demand destruction is not immediate, as consumption patterns and habits take time to adjust. In this context, he also referred to the importance of hedging, noting that timely energy-risk hedging has enabled METLEN to limit its exposure to extreme market volatility.
In closing, Evangelos Mytilineos broadened the discussion beyond energy and metals, focusing on Europe’s position in the new geopolitical environment. At a time when the major powers are redefining their relationships and the global balance of power, he warned that Europe risks further weakening its role unless it effectively addresses the pressures on its energy and industrial competitiveness.
