# Metlen warns Europe may lose gallium supply to US buyers *The Greek refiner's planned 50-ton unit covers all European demand, but 25% is already contracted to an American firm as regional chipmakers resist long-term commitments.* **Published:** September 16, 2026 **By:** Mina Okoro **Section:** Energy & Critical Minerals — Cross-border **Format:** Why It Matters **Confidence:** medium **Source:** https://eastasiabrief.com/energy-minerals/metlen-warns-europe-may-lose-gallium-supply-us-buyers-289 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - METLEN warns 50-ton Greek gallium output will flow to US and Japan without EU offtake - US tech buyer already contracted 25% of capacity, with two further foreign deals in negotiation - Commercial production begins in 2027, scaling to 100% of EU demand by 2028 ![A worker wearing a blue hard hat holds a glass beaker containing metal samples at an industrial processing plant. (AI-generated image)](https://eastasiabrief.com/media/2026-09-15-26cf9e5ee926.webp) *A worker wearing a blue hard hat holds a glass beaker containing metal samples at an industrial processing plant. (AI-generated image)* METLEN Energy & Metals warned on Sept. 15, 2026, that Europe could lose its entire planned gallium supply to overseas buyers unless regional manufacturers sign long-term purchase agreements. The Greek industrial group plans to produce up to 50 metric tons of gallium annually from 2027 at its Agios Nikolaos complex in Viotia. That volume would cover 100% of annual European Union demand. METLEN has already sold roughly 25% of that planned capacity, or 12.5 metric tons, to a major US technology corporation under a multi-year contract. It is currently negotiating two additional supply pacts with buyers in the United States and Japan. European industrial consumers continue to avoid domestic procurement agreements because they prefer lower-priced imported feedstock, Chairman Evangelos Mytilineos said. Most regional buyers still rely on Chinese supply channels. METLEN calculates its extraction cost at under $300 per kilogram, with a medium-term target of $100. Chinese suppliers offer lower spot pricing, leaving European refiners without regional purchase commitments. Gallium is an essential raw material for advanced semiconductors, including gallium nitride and gallium arsenide substrates. Chipmakers use the compound to produce power management chips, radio-frequency components, defense radar and electric vehicle inverters. European semiconductor producers, including STMicroelectronics and Infineon Technologies, have expanded gallium nitride production lines across the continent. Those facilities rely entirely on imported metal to sustain wafer manufacturing. China controls approximately 98% of global primary refined gallium production. Beijing imposed export licensing restrictions on the mineral in August 2023, creating administrative delays and supply friction for Western industrial buyers. METLEN approved a €295.5 million ($328 million) final investment decision in January 2025 to develop the extraction unit. The capital program expands bauxite mining and raises alumina output to 1.265 million metric tons annually. METLEN produced an initial batch of five kilograms of gallium at the site in January 2026 to qualify the metal with industrial customers. That material underwent purity testing to verify specifications for high-grade compound semiconductor manufacturing. The European Commission designated the refinery a Strategic Project under the Critical Raw Materials Act in March 2025. The status grants streamlined permitting and accelerated regulatory handling across member states. The European Investment Bank approved €90 million in project debt on Jan. 15, 2026, under its REPowerEU facility. Greek authorities also cleared €118 million in state grants and tax incentives under national strategic investment rules. The European Union's Critical Raw Materials Act targets domestic processing of 40% of strategic minerals by 2030. The regulation lacks binding purchasing quotas for European end users, leaving refiners exposed to price competition from subsidized foreign producers. Public subsidies help finance construction but do not provide revenue certainty once operations begin. European buyers purchase critical minerals through spot tenders rather than multi-year volume commitments, industrial analysts said. American buyers have taken a different approach to critical supply lines. Commercial technology companies and defense contractors in the United States routinely sign multi-year offtake contracts to guarantee delivery and underwrite Western processing capacity. Japanese procurement teams are also pursuing direct supply contracts with non-Chinese producers. METLEN confirmed it is in advanced talks with Japanese buyers seeking to insulate domestic component makers from Chinese export licensing rules. Without European offtake agreements, Greek output will move abroad for purification and wafer fabrication. European device makers would then have to buy back finished semiconductor wafers from fabricators in the United States and Japan. Gallium occurs as a trace element in bauxite ore, requiring complex chemical recovery during alumina refining. The extraction circuit requires steady baseload energy and high chemical consumption, keeping operational costs rigid. Commercial operations at the Agios Nikolaos gallium line are scheduled to begin in 2027, with full 50-ton output targeted for 2028. Talks regarding the two pending export contracts in the United States and Japan remain underway. METLEN has not disclosed the name of the US technology buyer or the pricing terms of the supply pact. Company announcements do not confirm whether delays in European subsidy disbursements occurred or influenced the export talks. Global primary gallium consumption outside China remains reliant on single-country export permits while the Greek refinery completes site development. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Gallium export diversion risk | compound fab lines monitor overseas wafer substrate prices | maintains 98% primary gallium market share under export licensing rules | tech buyers negotiate direct Greek offtake to bypass Chinese export quotas | Western gallium supply chain splits between US long-term buyers and spot market | ## In this story - **Companies:** METLEN Energy & Metals - **Tickers:** MTLN.L, MYTIL.AT - **Exposed:** STMicroelectronics, Infineon Technologies - **Policy:** Economic Security, Subsidies, Export Controls - **Impact:** Supply Chain, Pricing, Capex ## Primary sources 1. ft.com 2. metlen.com 3. bankingnews.gr 4. miningmx.com 5. voria.gr --- Cite as: East Asia Brief, "Metlen warns Europe may lose gallium supply to US buyers," September 16, 2026. https://eastasiabrief.com/energy-minerals/metlen-warns-europe-may-lose-gallium-supply-us-buyers-289