Europe risks losing the race for gallium, despite having the capability to competitively produce the critical raw material, warns METLEN Executive Chairman Evangelos Mytilineos via the Financial Times. As the EU attempts to limit its dependence on China for strategic raw materials, the European market has yet to establish the demand mechanisms, financing, and long-term contracts required to support domestic production. The paradox is explosive: METLEN plans to produce up to 50 tons of gallium annually—a quantity that can cover all current European gallium demand—yet it is already finding greater purchasing willingness in the US.
Metlen's capabilities
In the interview given to the Financial Times and journalist Camilla Hodgson, METLEN Executive Chairman Evangelos Mytilineos focused on METLEN's capacity to meet all present European gallium demand through its output, while highlighting the paradox of a Europe that seeks to reduce reliance on China for critical raw materials without establishing the demand and framework needed to absorb European production. At the center of the interview is gallium, where METLEN plans an annual output of up to 50 tons, a volume that the company states could meet total European demand. Initial production is expected to begin next year, with METLEN's key competitive edge lying in its remarkably low production cost—currently under $300 per kilogram, compared to European market prices exceeding $3,000 per kilogram (as shown in data published by the FT citing Fastmarkets). At the same time, the firm targets a further cost reduction to $100 per kilogram, strengthening its resilience even in the event of a significant increase in Chinese supply and a drop in prices.
Preferring the cheaper Chinese product
At the same time, Mr. Mytilineos emphasized that while the European Union seeks to curb its reliance on China, it has not yet built the necessary funding mechanisms, demand, and long-term commitments that would allow European production to remain within the European market. As he points out, European businesses still largely prefer the cheaper Chinese product, even as the US and Japan move more decisively to secure their own critical supply chains. Illustratively, in the absence of organized European demand, the international market appears far more prepared to absorb METLEN's output. Approximately 25% of planned production has already been sold to an American technology firm, while two additional potential agreements with buyers outside Europe are currently under evaluation.
Strategic raw material
According to the FT, gallium is a raw material of strategic importance, with vital applications in semiconductors, artificial intelligence, satellites, radar, and defense tech systems. The case of METLEN thus underscores a broader European challenge: Europe possesses the ability to produce critical raw materials competitively, but it must forge the right conditions—through stable demand, funding, and long-term commercial commitments—for this production to yield genuine strategic autonomy.
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