STOCKS | Metlen Chief Warns Europe Could Lose Key High-Tech Metals Race

A FTSE 100 energy group warned that Europe may still lose the competition for metals needed by high-tech industries, even if the region can produce enough critical metals to meet its own demand. According to Sina Finance, Metlen Chairman Evangelos Mytilineos said European companies are unwilling to pay higher prices for gallium, which the company plans to start producing next year, and prefer cheaper supply. Mytilineos warned that if Europe cannot build stable, systematic domestic demand, the metal will be sold outside Europe to buyers in the United States and Japan. He also said Metlen plans to produce 50 tons of gallium a year, with about one-quarter already sold to an unnamed U.S. technology company, while two other potential non-European deals are under discussion. Fastmarkets' Henry Sanderson said the United States is pouring in huge sums to catch up with market leaders, while Europe has not taken similar action. ProjectBlue founder Jack Bedder said Japan has invested in critical materials supply chains for years, while recent U.S. intervention in the market is one of the biggest commodity-market moves in a generation.