US Department of War Funds Gallium Plant in Australia

The US Department of War is providing $174 million in financing to Alcoa Corp. to construct a gallium plant at the Wagerup alumina refinery in Western Australia. The project aims to reduce United States reliance on China, which controls approximately 98% of global gallium production and banned direct flows to the US in 2024.

Gallium is a critical component for high-performance semiconductors used in advanced radar and missile guidance systems. Alcoa expects the new facility to produce roughly 100 tons of gallium metal annually, with construction having commenced in July 2026.

The initiative is a strategic partnership involving Alcoa Corp., Japan's Sojitz Corp., and the Japan Organization for Metals and Energy Security. Michael Cadenazzi, the Assistant Secretary of War for Industrial Base Policy, stated the agreement with Australia and Japan will secure a vital supply of gallium for the defense industrial base, strengthening collective security and economic resilience.