METLEN CRITICAL RAW MATERIAL INVESTMENTS

The project concerns investments in Central Greece and consists of two components 1) the exploration and extraction of Bauxite primarily used in commercial-scale production of aluminium and 2) a Gallium production process.

The aim is to support the development and implementation of strategic initiatives in sustainable mining and critical raw material production, specifically targeting advancements in bauxite exploration, exploitation, and gallium processing. The EIB financing will enable the deployment of innovative technologies, infrastructure upgrades, and the construction of a new gallium production facility, contributing to environmental sustainability, resource efficiency, and EU supply chain resilience. Additionally, the project will contribute to the creation of highly skilled jobs in a less developed region, fostering economic growth and development.

This project supports the exploration and extraction of bauxite for aluminium production and the production of gallium, increasing the production capacity of critical raw materials (CRM) in the EU and supporting the targets of the CRM act.

It is eligible under Article 309 point (c) Common interest, and qualifies under the public policy goal of "Innovation, Digital and Human Capital". It is located in Greece, a less developed region, and hence contributes to the transversal objective of Cohesion.

CRM projects often face market failures, such as reliance on imports, high costs, permitting delays, and market volatility. Hence, strategic support is needed to ensure a stable and sustainable supply within the EU.

Aluminium production supports decarbonisation, is highly recyclable, and creates local jobs. It is also key for renewable energy technologies, by providing essential materials for solar and wind power.

Gallium plays a crucial role in high-tech and clean energy applications, including semiconductors, LEDs and solar panels. Its supply within the EU strengthens supply chain resilience and reduces reliance on a single source.

The EIB's financing is highly valued by the promoter for its favourable terms, but also for the credibility it brings, helping to attract investors and other financiers.

The project components have been screened under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU, as amended by Directive 2014/52/EU, and also fall under the Industrial Emissions Directive (IED) in accordance with the relevant decisions establishing BAT conclusions (BREF). Where applicable, and based on a risk-based approach as defined in the EIB Group Environmental and Social Policy, the requirements of the above will be checked during appraisal.

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the promoter to apply those rules.