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Australian bauxite producer Metro Mining (ASX:MMI) is targeting up to 7 million tonnes of production by the end of 2025, as the company executes on its plan to expand capacity and lower production costs.

“Economies of scale are by far the most important lever that we're pulling to get down to that cost number,” said Simon Wensley, Metro Mining’s managing director, in a recent Investing News Network interview, noting that optimisation and expansion will drive costs down to US$30 per dry metric tonne delivered.

“And if we can achieve that number, we will be the lowest-cost producer in that marginal market of China,” he said.

Bauxite is the primary ore used to produce aluminium, a valuable, lightweight metal essential to almost all aspects of the global energy transition. Demand for aluminium is expected to significantly increase over the next few years, driven by increased activity in the transportation, electric vehicle and clean energy sectors.

Metro Mining has already produced and sold more than 2 million tonnes of its production in the second half of 2025, Wensley said. He added that the company expects a “very strong” second half, with production volumes expected to reach between 4.5 million and 5 million tonnes by year end.

“Over the next months and the next quarter, we should see real demonstration of that expanded capacity flowing through the market," he noted.

Watch the full interview with Simon Wensley, managing director of Metro Mining, above.