In a major advance for the global critical minerals supply chain, the governments of the United States and Australia have extended formal support for Alcoa Corporation’s proposed gallium production facility in Western Australia. This strategic investment underscores Alcoa’s central role in the emerging critical minerals ecosystem and marks a significant milestone in strengthening supply chain resilience for advanced technologies.
Announced on October 21, 2025, the support for Alcoa’s gallium project was formalized as part of a broader bilateral agreement between U.S. President Donald Trump and Australian Prime Minister Anthony Albanese. The leaders committed to jointly invest at least $2 billion (US$1 billion each) in critical minerals mining and processing initiatives, with the intention of countering China’s dominance in the sector. The initiative also includes offtake rights for both governments, securing access to gallium for industrial and defense applications. The U.S. Export-Import Bank (EXIM) facilitated this momentum by issuing seven Letters of Interest totaling over $2.2 billion, earmarked for advancing U.S.-aligned critical mineral projects in Australia. These included Alcoa’s gallium project alongside other initiatives by companies such as Arafura Rare Earths and Northern Minerals.
Alcoa’s proposed gallium facility will be co-located at its existing Wagerup alumina refinery in Western Australia. Gallium, which naturally occurs in bauxite —the raw material used to produce alumina — will be extracted during the refining process using advanced recovery technologies.
Once operational, the plant is expected to produce 100 metric tons of gallium annually, potentially accounting for 10% of the global supply. This will be a game-changer in industrial sectors such as semiconductors, optoelectronics, and defense, where gallium is considered a strategic material.
Alcoa is working under a Joint Development Agreement (JDA), signed in August 2025, with Japan Australia Gallium Associates Pty Ltd (JAGA), a joint venture between the Japanese Government and Sojitz Corporation. Upon the completion of feasibility assessments, a special purpose vehicle (SPV) owned by Alcoa and the U.S. and Australian governments is expected to enter into a joint venture with JAGA to fund, construct, and operate the plant.
Gallium is classified as a critical mineral by the governments of the United States, Australia, and Japan due to its essential applications in semiconductor manufacturing, defense technologies, and green energy solutions like solar panels and LEDs.
Currently, the global supply of gallium is highly concentrated and dominated by a single national source. This has raised concerns about geostrategic vulnerabilities, prompting Western nations to prioritize domestic and allied production capabilities.“Alcoa has been a strong contributor to both the American and Australian economies and welcomes the opportunity to support both nations in progressing a new source of gallium,” said William F. Oplinger, President and CEO of Alcoa. “The investment support from the U.S. and Australian governments underscores Alcoa’s role in supporting the development of the critical mineral supply chain.”
With the backing of three allied governments and industry stakeholders, the gallium project is moving full steam ahead. Current efforts are focused on completing final feasibility studies, securing regulatory approvals, and establishing definitive agreements between Alcoa, JAGA, and the respective governments. The parties involved are targeting a final investment decision in 2026. The plant’s commissioning would follow soon after, supporting global technology infrastructure and reducing reliance on single-source supply chains.
Alcoa also confirmed its commitment to working closely with the Western Australian Government under the State Agreement and approvals framework to ensure the responsible and efficient development of the project. Alcoa’s gallium initiative is part of a broader resurgence of critical mineral investment in Australia. The country, already a global leader in bauxite and alumina production, is now positioning itself as a major hub for the processing of high-value strategic minerals.
The project also dovetails with the Australian Aluminum Council’s recent efforts to promote sustainable and strategic development of the aluminum value chain, including gallium recovery. These developments promise to deliver both environmental and economic advantages through localized processing and job creation.
The strong partnership between Alcoa and the governments of the U.S., Australia, and Japan represents more than just a new plant; it’s a foundational pillar in a resilient, diversified, and strategically vital critical minerals supply chain. As the world shifts toward a more technology-driven and low-carbon economy, projects like Alcoa’s gallium facility will be essential in powering innovation and safeguarding national interests.