US and Australian governments announce support for WA gallium project

The United States and Australian governments have announced their intention to advance the development of a gallium plant to be co-located at Alcoa’s alumina refinery in Western Australia.

Gallium is naturally present in bauxite, the raw material used in the production of alumina, and can be extracted during the refining process. Gallium is a critical mineral essential to technology, especially the semiconductor industry and defence sectors and is recognised as vital to national security by the United States, Australia and Japan. Globally, gallium production is concentrated from a single source, and market controls have heightened interest in establishing and securing alternate supply chains.

This latest development follows support given for the project from Japan Australia Gallium Associates (JAGA), a joint venture between the Japanese Government and Sojitz Corporation (Sojitz), through a joint development agreement with Alcoa announced in August.

Following completion of feasibility assessments, Alcoa expects that a joint US, Australia and Alcoa special purpose vehicle (SPV) would enter into the joint venture with JAGA to construct a gallium plant. The plant, which would be operated by Alcoa, would be expected to produce 100 metric tons of gallium annually.

Under the terms of the non-binding agreement, the US and Australian governments and Alcoa would provide capital to the SPV and receive gallium offtake in proportion to their interests. Among other purposes, the capital would be used for preparation of final feasibility studies, and the development and construction of the project. Definitive agreements for the gallium joint venture will be prepared among the governments of the United States, Australia and Japan, and Alcoa and Sojitz.

“Alcoa has been a strong contributor to both the American and Australian economies and welcomes the opportunity to support both nations in progressing a new source of gallium,” said Alcoa President and CEO William Oplinger. “The investment support from the US and Australian governments underscores Alcoa’s role in supporting the development of the critical mineral supply chain, and the importance of our Australian operations not only to the aluminium industry, but also as key to manufacturing, technology, and defence industries.”

Alcoa will continue to work cooperatively with the Western Australian Government to progress the project under the State Agreement and approvals framework. The parties are targeting 2026 for final investment decision and production.

Image credit: iStock.com/Bjoern Wylezich