The US government is investing an estimated US$174 million (c. £129m) in a new Australian gallium production facility, as the USA and its allies seek to reduce reliance on China for the critical mineral.
The facility, to be built and operated by Alcoa at its Wagerup alumina refinery in Western Australia, is expected to produce 100 tonnes of gallium metal annually. According to the Australian government it could supply up to 10% of global demand.
Construction officially started in late August, following a groundbreaking ceremony involving government and industry representatives from Australia, Japan and the USA.
The project brings together the US Department of War, Export Finance Australia, the Government of Japan, Sojitz Corporation and Alcoa of Australia.
Australian minister for resources Madeleine King commented: “This project shows how Australia can work with our international partners to build diverse and resilient critical minerals supply chains.”
Michael Cadenazzi, assistant secretary of war for industrial base policy, added: “This landmark agreement with our key allies, Australia and Japan, will secure a vital supply of gallium for our defence industrial base, strengthening our collective security and economic resilience for years to come.”
Gallium is an important input for high-performance semiconductors used in advanced radar, satellite and tactical communications, sensors and solar cells. The investment is intended to establish an additional source of the critical mineral and reduce vulnerabilities within existing global supply chains.
China accounted for 99% of worldwide primary low-purity gallium production in 2025, according to the latest data from the US Geological Survey.
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