A New Blueprint for Europe’s Industrial Independence

The European Union classifies Critical Raw Materials (CRMs) as substances with high economic importance to EU industry combined with elevated supply risk, due to concentrated global production, geopolitical vulnerabilities, or limited substitutes. The list is updated every three years; the current framework stems from the 2023 assessment, formalized in the Critical Raw Materials Act (CRMA), which entered into force in May 2024.

EU Critical Raw Materials List

The EU identifies 34 CRMs. A subset of 17 Strategic Raw Materials (SRMs) receives priority focus because they underpin the green/digital transitions, defense, and space sectors, with projected demand growth likely to outpace supply. Copper and nickel (battery-grade) are included as SRMs even though they fall short of full CRM thresholds in some metrics.

Full CRM List (Strategic Raw Materials in bold or highlighted where applicable):

Aluminium/Bauxite

Antimony

Arsenic

Baryte

Beryllium

Bismuth

Boron/Borates

Cobalt

Coking coal

Copper* (SRM)

Feldspar

Fluorspar

Gallium

Germanium

Hafnium

Helium

Heavy Rare Earth Elements (HREE)

Light Rare Earth Elements (LREE)

Lithium

Magnesium

Manganese

Natural graphite

Nickel (battery-grade, SRM)

Niobium

Phosphorus/Phosphate rock

Platinum Group Metals (PGM)

Scandium

Silicon metal

Strontium

Tantalum

Titanium metal

Tungsten

Vanadium

*Note: Aluminium/bauxite is treated as linked; gallium is often a by-product of bauxite/alumina processing.

Key applications include:

Batteries/EVs — Lithium, cobalt, nickel, graphite, manganese.

Renewables & electrification — Rare earths (magnets for wind turbines), copper, silicon, aluminum (transmission lines).

Semiconductors & digital — Gallium, germanium, silicon metal.

Defense & aerospace — Rare earths, gallium (for radars/semiconductors), titanium, tungsten, boron.

EU's Strategic Response: The Critical Raw Materials Act (CRMA)

The CRMA aims to reduce strategic dependencies (especially on China, which dominates processing for many materials like rare earths, gallium, and graphite) through:

Domestic capacity targets by 2030 (non-binding benchmarks for SRMs):

10% of annual EU consumption from domestic extraction.

40% from EU processing.

25% from recycling.

No more than 65% of any SRM from a single third country at any supply chain stage.

Strategic Projects: These receive streamlined permitting, easier access to funding, and priority support. In March 2025, the Commission selected 47 EU-based strategic projects across 13 member states (total projected investment ~€22.5 billion), covering 14 of the 17 SRMs. A further 13 projects in third countries were recognized in June 2025. A second call closed in January 2026.

Broader Initiatives:

RESourceEU Action Plan (launched late 2025/early 2026): Mobilizes at least €3 billion via EU funds, EIB, InvestEU, etc., for domestic projects, circularity, market monitoring, and strategic reserves. Includes a European Critical Raw Materials Centre (planned for 2026) for intelligence and financing coordination.

Emphasis on circularity (recycling permanent magnets, secondary markets) and international partnerships (Strategic Partnerships with third countries).

Procurement platform for aggregated buying to strengthen buyer power.

Challenges remain significant: Domestic production lags, permitting delays persist, and full self-sufficiency is unrealistic due to geology and time/capital requirements. The European Court of Auditors (2026 report) noted risks of missing targets, with heavy ongoing import reliance (e.g., ~90%+ for some rare earths and gallium pre-new projects).

Link to Metlen Energy & Metals and Greece

Metlen's integrated project at the Aluminium of Greece complex (Viotia) stands out as one of the most prominent strategic initiatives. It modernizes bauxite mining, expands alumina production (to ~1.265 million tonnes/year), and launches Europe's first large-scale gallium production line (~50 tonnes/year target by ~2028, potentially covering full EU demand). Gallium, a by-product of alumina refining from gallium-rich Greek bauxite, is vital for semiconductors, 5G, solar, and defense applications. China produces >90% globally; Europe has imported ~90% of its needs.

The project was designated a Strategic Project under the CRMA in March 2025 (one of only a few directly addressing gallium, bauxite/alumina, and aluminum together).

Backed by €90 million EIB financing (announced January 2026).

First small-scale output (5 kg) achieved by early 2026, with ramp-up planned.

It also supports aluminum for high-voltage transmission lines in an electrified, AI-driven economy and ties into Metlen's broader energy-metals-defense model.

This exemplifies the "new European industrial model" of cross-sector integration, leveraging existing infrastructure for critical materials while advancing decarbonization and strategic autonomy.

Broader Context and Outlook

Europe's push reflects a shift from globalization to "open strategic autonomy" amid trade tensions, export restrictions, and surging demand from the green/digital transitions. While recycling and substitution help, primary supply gaps persist for materials like rare earths and certain battery inputs. Progress depends on faster permitting, private investment, public-private financing, and balanced international cooperation without over-reliance on any single partner.

The CRMA and RESource

EU mark concrete steps, but analysts caution that targets are ambitious and geopolitical risks (e.g., China’s processing dominance) remain. Companies like Metlen illustrate how targeted industrial players can bridge policy and execution, particularly in aluminum-gallium value chains.

As Europe navigates an era of geopolitical uncertainty, supply chain disruptions, and accelerating technological change, the imperative for strategic self-sufficiency has never been clearer. The European Union has responded with policies aimed at “open strategic autonomy,” seeking to reduce dangerous dependencies on external powers for energy, critical raw materials, and advanced technologies while remaining open to global trade. In this context, one company stands out as a practical model of how scale, vertical integration, and forward-looking strategy can drive industrial resilience: Metlen Energy & Metals (formerly Mytilineos).

Metlen’s evolution from a Greek family-founded enterprise to a multinational listed on the London Stock Exchange (and FTSE 100) exemplifies a new blueprint for European industry. By combining a fully integrated energy business with a vertically integrated metals operation, the company creates natural synergies that hedge against volatility and accelerate growth in sectors vital to the green and digital transitions.

The Dual-Sector Model: Energy and Metals in Synergy

Metlen operates two complementary pillars. In Energy, it has built a diversified portfolio encompassing renewables (with a pipeline exceeding 10 GW), flexible thermal generation, energy storage, trading, and retail supply. Its efficient fleet and ability to act as a “virtual battery” — shifting consumption to periods of abundant low-cost renewable power — help stabilize grids and support the broader electrification of Europe.

In Metals, Metlen controls one of Europe’s few fully integrated aluminum value chains: from bauxite mining through alumina refining to primary and recycled aluminum production. Following the acquisition of IMERYS Bauxites Greece, it became Europe’s largest bauxite producer. This upstream strength is now being expanded significantly. A €295.5 million investment program, backed by the European Investment Bank, will increase bauxite output toward 2 million tonnes annually, raise alumina capacity to 1.265 million tonnes, and — crucially — launch Europe’s first domestic gallium production facility (targeting 50 tonnes initially). Gallium is a critical raw material essential for semiconductors, high-efficiency solar panels, and advanced electronics.

These investments directly address Europe’s vulnerabilities. The continent remains heavily dependent on imports for many critical materials, with China dominating gallium and rare earth processing. By producing gallium domestically, Metlen contributes concretely to the EU’s Critical Raw Materials Act and reduces exposure to geopolitical risks.

Vertical Integration as a Competitive and Strategic Advantage

What makes Metlen’s approach distinctive is its emphasis on vertical integration. Controlling more of the value chain internally allows for greater cost efficiency, quality control, and resilience against price shocks or export restrictions. The aluminum smelter, for instance, can flexibly adjust its energy consumption to support grid stability — turning an energy-intensive process into an asset for the energy transition.

The company also invests in circular economy initiatives, including a pilot plant for advanced metals recovery, which aligns with Europe’s sustainability goals and reduces the need for primary raw materials. Digital transformation further enhances competitiveness: proprietary technologies, AI-driven optimization, and integrated operational systems help maintain low cash costs even in a high-energy-cost European environment.

Financially, Metlen has demonstrated robust performance, with ambitions for medium-term EBITDA in the €1.9–2.08 billion range. Its model of disciplined capital allocation, international partnerships (including long-term bauxite and alumina agreements with global miners), and asset rotation in renewables enables self-funded growth while pursuing new frontiers such as defense-related manufacturing in Greece.

Aligning Corporate Strategy with European Priorities

Metlen’s trajectory aligns closely with key EU objectives: energy security, reindustrialization, and leadership in the green transition. Its work in critical materials supports the goals of the Net-Zero Industry Act and the Chips Act. At the same time, the company’s international footprint — operating in more than 30 countries — embodies “open” autonomy: it leverages global opportunities while strengthening Europe’s domestic industrial base.

CEO Evangelos Mytilineos has emphasized that strategic autonomy is not merely declared but earned through production, investment, and speed of execution. Metlen’s actions — from gallium production to expanding renewable capacity and exploring circular metals — illustrate this principle in practice.

A Scalable Blueprint for Broader Renewal

Europe faces stiff competition from state-supported industries in China and massive incentives in the United States. Fragmented national efforts or reliance on subsidies alone will not suffice. Metlen’s success suggests a more effective path: fostering integrated, competitive private-sector champions that combine scale with innovation and sustainability.

Such companies can anchor regional supply chains, create high-skilled jobs, and attract further investment. They demonstrate that European industry can be both green and globally competitive when supported by a clear strategy and bold capital deployment.

Of course, no single company can solve Europe’s industrial challenges. Systemic issues — regulatory complexity, permitting delays, and energy costs — still require policy attention. Yet Metlen provides a tangible proof-of-concept: vertical integration, cross-sector synergies, and targeted investment in critical technologies can build genuine resilience.

As Europe pushes toward greater self-sufficiency, models like Metlen offer not just inspiration but a replicable blueprint. By scaling what works — integration, innovation, and strategic risk-taking — the continent can renew its industrial strength and secure its economic future in an increasingly uncertain world.

In the end, industrial independence is not about isolation but about building the internal capabilities that allow Europe to engage the world from a position of strength. Metlen Energy & Metals is showing how that can be done. 

Zeljko Serdar, CCRES