Department of War commits $174 million to secure gallium supply chain

The Department of War announced an estimated $174 million equity financing investment to build a new gallium production facility at Alcoa’s Wagerup alumina refinery. Executed by the Office of the Assistant Secretary of War for Industrial Base Policy through the Industrial Base Analysis and Sustainment program, the initiative is a multinational partnership with Export Finance Australia, the Government of Japan, and Sojitz Corporation. Alcoa of Australia will operate the facility, which is projected to produce 100 metric tons of gallium metal annually. The final U.S. dollar value is subject to exchange rate fluctuations at the time of the transaction.

“This landmark agreement with our key allies, Australia and Japan, will secure a vital supply of gallium for our defense industrial base, strengthening our collective security and economic resilience for years to come,” said the Honorable Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy.

Gallium is essential to high-performance semiconductors used in key defense capabilities, including advanced radars for aerial and maritime platforms, ground-based missile defense systems, secure satellite and tactical communications, and precision electro-optical/infrared sensors for missile guidance and thermal imaging. It is also critical for the solar cells that power military and civilian satellites. The project is intended to secure a reliable supply and build long-term resilience in the existing global supply chain.

Since its inception in 2014, the Industrial Base Analysis and Sustainment program has invested over $2.6 billion across more than 200 projects to restore and strengthen the defense industrial base.

The Office of the Assistant Secretary of War for Industrial Base Policy works with domestic and international partners to sustain a robust, secure, and resilient industrial base enabling the warfighter. Its Warfighting Investments, Resourcing, and Execution Office, which executes the IBAS program, is managed within the Office of the Deputy Assistant Secretary of War for Industrial Base Resilience and provides the Department of War with capabilities to strengthen the U.S. industrial base in line with national security requirements.