Pentagon backs Alcoa gallium plant in Australia
The US is now buying equity in foreign mineral projects. A gallium plant in Western Australia is the latest example.
What happened
The US Department of Defense announced a $174 million equity investment to help build a gallium recovery facility at Alcoa's Wagerup alumina refinery in Australia, alongside Japan's Sojitz and Export Finance Australia. The target is about 100 tonnes of gallium a year, aimed largely at radar and missile-defense uses.
Weeks earlier, the Department of Energy also announced $500 million for seven projects covering mineral processing, battery manufacturing and recycling.
Our take
Gallium comes out of alumina refining, so building supply means bolting recovery units onto existing refineries — which is exactly what this does. It's a smart, relatively fast path compared with greenfield mining.
The three-country financing structure is the template to watch: the US brings capital and a buyer, Japan brings a trading house and offtake, Australia brings the resource and export finance. Expect more of these allied deals.
Why it matters for AI infrastructure
Defense will take priority, but 100 tonnes is a meaningful share of what's needed outside China. Any spare capacity helps the gallium nitride power electronics and optical components used in AI data centers.
What we're watching
- Construction milestones and first production at Wagerup
- Similar equity deals for germanium and indium
- Japan's push to give its state minerals agency independent investment powers