Evangelos Mytilineos, Executive Chairman of METLEN, was a keynote speaker at the 11th Financial Times Energy Transition Summit in London.
In a discussion with Financial Times journalist Verity Ratcliffe, he spoke about critical raw materials and METLEN’s strategic investment in gallium production, the synergies between its energy and metals businesses, the impact of high energy costs on European industry, and geopolitical developments affecting Europe’s position internationally.
The focus of the discussion was METLEN’s strategic investment in gallium production. With the expansion now under way, METLEN plans to reach alumina production of 1.3 million tonnes and produce 50 tonnes of gallium, with commercial operations scheduled to begin in the third quarter of 2027.
Explaining the thinking behind the investment, he said METLEN’s philosophy includes taking “measured risks” (calculated risks), taking into account both market conditions and geopolitical developments.
A key factor in the final investment decision was China’s dominant position in global gallium production and the possibility of a significant increase in supply. He said the company’s view was that relations between China and the West were unlikely to return to full normality.
At the same time, the price of gallium has risen from less than $500 per kilogram when the investment decision was made to $3,500 per kilogram, while METLEN is already considering germanium and scandium as its next critical metals.
METLEN’s research and development has played a decisive role in the project. As Mr Mytilineos stressed, the expertise needed to recover gallium was developed in-house by the company’s R&D team.
Gallium production, he said, is primarily a challenge of expertise, rather than a particularly capital-intensive investment, given that the necessary alumina production base is already in place.
Mr Mytilineos also highlighted the synergies between METLEN’s Energy and Metals divisions. He explained that the gradual decline in long-term energy contracts and rising energy costs in Europe had led the company to develop strong in-house energy generation and management capabilities.
This strategy proved particularly important during the energy crisis, enabling METLEN to draw on a diversified energy portfolio to meet the needs of both its metals operations and its energy business. In a highly volatile environment, he stressed that forecasting and managing energy risk are crucial to industrial competitiveness.
On natural gas in particular and Europe’s higher energy costs, he said METLEN monitors international markets daily through its specialist Energy Management team, adapting its strategy to constantly changing conditions.
He stressed that high natural gas prices are putting significant pressure on European industry, although demand does not fall immediately, as adjusting consumption and changing habits take time. In this context, he also highlighted the importance of hedging, noting that hedging energy risk early had allowed METLEN to limit its exposure to extreme market fluctuations.
In closing, Evangelos Mytilineos broadened the discussion beyond energy and metals to focus on Europe’s place in the new geopolitical environment. At a time when major powers are redefining their relationships and the international balance of power, he warned that Europe risks further weakening its role if it does not effectively address the pressures on its energy and industrial competitiveness.