US funds Alcoa Corp. $93M gallium plant in Australia to break China’s grip on critical minerals

The US Department of Defense is putting $93 million into a new gallium production facility at Alcoa Corporation’s Wagerup alumina refinery in Western Australia, part of a broader effort by Washington, Canberra, and Tokyo to chip away at China’s near-total dominance over a mineral essential to modern semiconductors and defense systems. China currently produces somewhere between 98% and 99% of the world’s refined gallium. The deal’s architecture The final investment decision was announced on July 14, 2026, with groundbreaking expected about six weeks later on August 25. Once operational, the Wagerup plant is projected to churn out roughly 100 metric tons of gallium per year, which would represent up to 10% of global supply from a single facility. Australia is the biggest financial backer, contributing up to $200 million in concessional equity financing. In return, Canberra secures offtake rights, meaning it gets dibs on a portion of the output. The US equity investment of $93 million comes directly from the Department of Defense, also with offtake rights attached. Japan rounds out the trio through JAGA, a joint venture between trading house Sojitz Corp and JOGMEC, Japan’s state-backe...