US Pursues Domestic Gallium Production Through Pentagon-Backed Refinery Expansion

The Trump administration is moving forward with a strategic investment to establish America’s first substantial gallium manufacturing capacity. Through a collaborative arrangement with Louisiana-based Atlantic Alumina (ATALCO), the Department of Defense plans to deploy US$150 million in preferred equity alongside US$300 million from Pinnacle Asset Management affiliates, according to Bloomberg reporting.

Bridging the Critical Mineral Gap

The initiative addresses a pressing vulnerability in America’s advanced technology supply chain. Gallium serves as a foundational component in military electronics and next-generation semiconductors, yet the US currently lacks meaningful domestic production capability. By contrast, China maintains commanding control over global gallium supplies and alumina processing infrastructure, creating strategic dependency that this deal aims to mitigate.

The partnership will finance dual objectives: expanding ATALCO’s alumina output and constructing new recovery infrastructure for gallium extraction. The latter resource emerges naturally during alumina refining processes, making the Gramercy, Louisiana facility ideally positioned for this expansion. The refinery, operational since the late 1950s and processing Jamaican bauxite into alumina, became the nation’s sole remaining facility of its kind following a neighboring competitor’s 2020 closure.

Production Targets and Market Impact

Once operational, the enhanced facility projects annual output of more than 1 million metric tons of alumina and up to 50 metric tons of gallium yearly. ATALCO currently fulfills approximately 40 percent of US alumina demand, positioning it as a cornerstone of domestic mineral security. The company characterized the arrangement as “an essential step in reducing reliance on foreign nations for critical minerals.”

Broader Supply Chain Resilience Strategy

This gallium-focused investment reflects a wider policy pivot. The administration previously backed a US$1.4 billion public-private partnership in November supporting Vulcan Elements and ReElement Technologies for rare earth magnet expansion. Similarly, officials have examined potential equity participation in Critical Metals, a US-listed firm advancing Greenland’s Tanbreez rare earths project.

The Pentagon’s direct capital injection represents an unconventional but deliberate approach to rebuilding domestic capacity in materials deemed strategically irreplaceable. Additional federal funding is anticipated within 30 days following transaction closure.