Alcoa to build gallium plant in Australia with US, Japan backing

Alcoa ↘ 0.08% announced on Tuesday that it has reached a final investment decision to build a gallium production plant at its Wagerup alumina refinery in Western Australia, backed by the governments of Australia, Japan, and the United States.reuters+2

The facility, which Alcoa will construct and operate as a joint venture, is expected to supply up to 10% of global gallium demand. Gallium is a critical mineral used in semiconductor manufacturing and defense applications, and its global supply is heavily concentrated, with China dominating production before imposing export restrictions on the material in 2023.streetinsider+2

A Multilateral Minerals Push

"This final investment decision reflects a shared commitment by governments and industry to strengthen critical mineral supply chains among the partners," said Alcoa President and CEO William F. Oplinger.investing+1

The project traces its roots to a joint development agreement Alcoa signed in August 2025 with Japan Australia Gallium Associates Pty Ltd (JAGA), a venture between the Japanese government and Sojitz. In October 2025, the U.S. and Australian governments formalized their support as part of a broader bilateral agreement between President Donald Trump and Prime Minister Anthony Albanese, under which the two countries committed to jointly invest at least $2 billion in critical minerals mining and processing.mining+2

The gallium refinery was named a priority project under the Australia-U.S. critical minerals framework signed by the two leaders in November 2025, according to Mining Weekly.miningweekly

Countering China's Grip on Supply

The plant, expected to produce around 100 metric tons of gallium annually, is designed to reduce Western reliance on Chinese supply chains. China's 2023 export controls on gallium and germanium prompted allied governments to accelerate efforts to develop alternative sources of the mineral, which is essential for next-generation chips and military technology.news.alcoa+2

Australia's participation has been channeled through Export Finance Australia under its Critical Minerals Facility, while the U.S. Export-Import Bank issued letters of interest totaling over $2.2 billion to support critical mineral projects in Australia, including the Wagerup gallium venture.questmetals

What Comes Next

Construction is expected to begin after final site preparations are completed. Alcoa said its participation in the joint venture is not expected to have a material impact on the company's financial position or results of operations. Earlier this month, Alcoa also agreed to acquire the bulk of South32's aluminum portfolio for up to $5.6 billion, further expanding its upstream footprint in the region.investing+2