JapanDefense & Geopolitical Fragmentation▲impact 4
US awards Alcoa $174M for Australian gallium plant
The U.S. Department of War will provide $174 million in financing to Alcoa Corp. to build a gallium plant at its alumina refinery in Western Australia, as Washington moves to reduce reliance on China for critical minerals. Gallium is essential for high-performance semiconductors used in defense technologies, and China controls about 98% of global production, having banned direct exports to the U.S. in 2024. Alcoa has begun construction on the Wagerup facility, expected to produce roughly 100 tons of gallium annually, in partnership with Japan's Sojitz Corp. and JOGMEC. Assistant Secretary of War Michael Cadenazzi called the agreement landmark, securing vital supply for the defense industrial base.