The facility will be located at Alcoa’s Wagerup alumina refinery, leveraging the site to extract gallium, a byproduct of bauxite processing. Because the mineral is rarely recovered elsewhere due to low profit margins, China currently dominates the market. Beijing’s move to impose export restrictions in 2023 spurred the urgent push for Western-controlled alternatives.
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U.S. Backs Australian Gallium Plant to Counter Chinese Dominance
The U.S. Defense Department is committing roughly $174 million in equity to a new gallium refinery in Western Australia, aiming to bypass China’s control over critical minerals. This move, part of a trilateral initiative with Australia and Japan, targets the supply chain for semiconductors essential to advanced radar and missile-defense systems.
Alcoa will lead construction and operations, with the plant projected to yield 100 metric tons of gallium annually—roughly 10% of the world's total supply. The Australian government has separately pledged up to $200 million for the project, which is being developed in partnership with Japan’s government and trading firm Sojitz. Assistant Secretary of Defense Michael Cadenazzi described the investment as a strategic necessity to secure the defense industrial base. The final U.S. financial contribution remains subject to currency fluctuations.
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