What's Happening?
Alcoa Corporation has announced that the United States and Australian governments are supporting the development of a gallium plant at Alcoa's Wagerup alumina refinery in Western Australia. This initiative
follows a Joint Development Agreement with Japan Australia Gallium Associates Pty Ltd, a joint venture between the Japanese Government and Sojitz Corporation. The project aims to produce 100 metric tons of gallium annually, a critical mineral essential for technology and defense sectors. The U.S. and Australian governments, along with Alcoa, will provide capital for the project, with gallium offtake proportional to their interests.
Why It's Important?
Gallium is crucial for the semiconductor industry and national security, making its production vital for technological advancement and defense. The collaboration between the U.S., Australia, and Japan highlights the strategic importance of diversifying gallium supply chains, especially given global market controls. This project not only strengthens Alcoa's role in the critical mineral supply chain but also underscores the significance of its Australian operations in supporting manufacturing, technology, and defense industries.
What's Next?
Alcoa plans to work with the Western Australian Government to progress the project under the State Agreement and approvals framework. The parties aim for a final investment decision and production by 2026, marking a significant step in establishing a new source of gallium.
