Alcoa and 3 governments back gallium plant in Western Australia

Alcoa and the governments of Australia, Japan and the US approved a gallium production plant at its Wagerup alumina refinery in Western Australia, marking a push to diversify supply of a critical mineral used in semiconductors and defense applications.

"This final investment decision reflects a shared commitment by governments and industry to strengthen critical mineral supply chains among the partners," said William F. Oplinger, President and Chief Executive Officer of Alcoa. "The project underscores the strategic importance of Western Australia and the role Alcoa's operations play in delivering critical materials essential to the global economy."

The facility will be constructed and operated by Alcoa, leveraging the company's experience in alumina refining and advanced mineral processing. Global gallium supply is highly concentrated, with China accounting for more than 90 percent of production, according to US Geological Survey data. Beijing imposed export controls on gallium and germanium in August 2023, restricting shipments of the metals used in semiconductors, fiber optics and military equipment. The Wagerup project aims to create a new, reliable source of gallium outside China for partner governments.

Construction is expected to commence following final site preparations. Alcoa said its participation in the joint venture, including its role as construction and operating manager, is not expected to have a material impact on its financial position or results of operations. The project represents one of the first major efforts by allied governments to build gallium processing capacity outside China, following similar initiatives in rare earths and lithium processing across Australia and North America.

This article is for informational purposes only and does not constitute investment advice.