Key Takeaways:
Alcoa and partners from Australia, Japan and the US broke ground Aug. 24 on a gallium production plant at the Wagerup alumina refinery in Western Australia.
"Alcoa is proud to work alongside our partners in Australia, Japan and the United States to help diversify the global gallium market," Elsabe Muller, president of Alcoa Australia, said.
The plant, which Alcoa will construct and operate, is expected to create up to 200 local construction jobs and about 20 permanent roles once operational. The project brings together government and industry partners from the three countries, including Sojitz Corp. and Japan's Ministry of Economy, Trade and Industry.
Gallium is a critical mineral used in semiconductors and defense applications, and China accounts for the vast majority of global supply. The Wagerup project marks a step toward diversifying that supply chain, with construction now under way at the site.
A Byproduct With Strategic Weight
Gallium is recovered as a byproduct of alumina refining, which is why the plant is co-located at Wagerup. China produces roughly 98 percent of the world's gallium, according to USGS data, and has restricted exports of the metal in recent years as part of its critical minerals strategy. The tri-nation project gives Australia, Japan and the US a source outside Chinese control.
Who's Involved
The groundbreaking ceremony drew Australian federal ministers Madeleine King and Tim Ayres, Western Australian minister David Michael, and US Consul General in Perth Colleen Altstock. Japan was represented by Kazumi Nishikawa, director general of the Minister's Secretariat at METI, and Sojitz's Katsunori Okada, chief operating officer of the company's metals, mineral resources and recycling division.
The project is part of a broader push by the three governments to secure critical mineral supply chains. Alcoa, which trades on the NYSE and ASX, operates three alumina refineries in Western Australia, giving it the feedstock base to expand gallium output.
The US, Japan and Australia have each moved to secure critical minerals since China tightened export controls on gallium and germanium in 2023, requiring permits for shipments. Gallium spot prices have swung sharply since, with the metal trading well above pre-restriction levels. The Wagerup plant, once operational, would add a Western source to a market long dominated by Chinese producers such as Aluminum Corp. of China.
This article is for informational purposes only and does not constitute investment advice.
