Mytilineos Energy & Metals (METLEN) has invested €295.5M (US$306.8M) into developing an integrated bauxite, alumina, and gallium production line its Aluminium of Greece plant.

The investment is targeted at research and development of new bauxite resources, developing environmentally friendly technologies to enhance operational growth, modernising alumina production and the construction of new gallium production facilities.

METLEN operates an integrated aluminium supply chain with capacities of 1,770ktpy bauxite, 865ktpy alumina, and 185ktpy aluminium. The company now aims to expand its production capacity to 2,000ktpy bauxite, 1,265ktpy alumina, and for the first time, produce 50tpy of gallium. These planned developments may adjust bauxite trade by further increasing Greek supply to other European alumina refineries and aluminium smelters, while also reducing reliance on imports from Brazil. This shift, however, strongly depends on augmented extraction of bauxite resources.

Given that gallium metal is mainly produced through the refining of bauxite into alumina via the Bayer process, and less commonly, through zinc refining processes, investments in Greece's bauxite and alumina markets have an impact on the gallium industry. Gallium metal production is predominantly concentrated in China, which accounts for over 95% global output. This share of production includes secondary recycled metal sourced from industrial scrap (pre-consumer materials).

Recent restrictions imposed by the Chinese Ministry of Commerce, including a complete ban on gallium exports to the USA, have significantly reduced global gallium availability. Historically, high production outside of China has made non-Chinese gallium less attractive.

Although the global market will still depend on Chinese gallium, the current geopolitical climate is likely to drive consumers to seek alternative sources to stabilise supply chains and mitigate risks. Investments like METLEN’s are evidence for this trend.