Alcoa Corp (AA) said on Tuesday it has reached a final investment decision to build a gallium production facility at its Wagerup alumina refinery in Western Australia, with backing from the Australian, Japanese and U.S. governments, as part of a push to diversify global supply of the critical mineral.
The plant, to be built and operated by Alcoa, will extract gallium directly from the existing alumina refining process rather than operating as a standalone mine. Once operational, it is expected to supply up to 10% of the world’s gallium. Construction will begin after final site preparations are completed. Alcoa said its participation, including its role as construction and operating manager, is not expected to materially affect its financial position or operating results.
“This final investment decision reflects a shared commitment by governments and industry to strengthen critical mineral supply chains among the partners,” said President and CEO William F. Oplinger, adding that the project highlights the strategic importance of Western Australia in supplying materials essential to advanced technologies.
Gallium, used in semiconductors, power electronics and defense technologies, is dominated by China, which accounts for the vast majority of global primary production. Beijing has tightened export controls on the metal in recent years, fueling supply-chain security concerns and spurring the U.S., Japan and Australia to seek alternative sources.
The decision follows a joint development agreement Alcoa signed earlier with a venture between the Japanese government and Sojitz Corp, as well as public support from Washington and Canberra in October last year for the company’s expansion plans in the region. The final investment decision now moves the public-private cooperation from intent to execution.
The gallium project comes shortly after Alcoa agreed earlier this month to buy the bulk of South32’s aluminum portfolio for an implied enterprise value of up to $5.6 billion, covering bauxite, alumina and aluminum assets in Brazil, South Africa and Western Australia. That acquisition broadens Alcoa’s upstream raw material footprint and aligns closely with its strategy to build supply-chain resilience.
Taken together, the Wagerup gallium plant and the South32 deal reflect an accelerating effort by the U.S., Australia, Japan and their corporate champions to construct more diversified and secure supply chains for minerals critical to the energy transition, advanced manufacturing and national security — signaling that de-risking has become a multi-party consensus.
