Department of War makes $100 million follow-on equity investment in Atalco to secure the nation’s last alumina refinery

The Department of War’s Office of the Assistant Secretary of War for Industrial Base Policy, in partnership with the Economic Defense Unit, has made a $100 million follow-on preferred equity investment in Atlantic Alumina Company LLC (Atalco) through the Industrial Base Analysis and Sustainment program.

“Our national defense strategy relies on a robust and self-sufficient industrial base,” said the Honorable Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy. “Investing in Atalco ensures the United States maintains its domestic alumina refining capability, mitigating a critical supply chain risk and protecting our military readiness from foreign interference.”

The move brings the Department’s total investment in Atalco to $400 million. The Department’s funding has catalyzed $350 million in parallel private investments from Atalco’s current backers, with an additional $50 million expected within 75 days, for $400 million in third-party capital overall. Together, the $800 million in public and private funding is intended to secure operations at the nation’s last remaining domestic alumina refinery, reinforcing a critical link in the U.S. defense industrial base.

Both the public and private follow-on investments will purchase Class A Preferred Units to provide liquidity for operations, counter unsustainable foreign competition, and fund capital projects aimed at restoring the refinery to its 1.2 million metric ton annual nameplate capacity.

The Department requires 200,000 metric tons of metallurgical aluminum each year. Atalco currently supplies 60 percent of that need, and the investment is projected to scale output to 142 percent of the Department’s demand by 2029. With 99.3 percent of the refinery’s production allocated to national security subsectors, the initiative is designed to reduce exposure to foreign supply-chain risks.

“This transaction is structurally anchored to protect U.S. taxpayer capital while providing the targeted liquidity necessary to scale production,” said George K. Kollitides II, Director of the Economic Defense Unit. “By investing in this strategic asset, DoW mobilized $400 million of private capital and attracted a world-class independent board of directors to accelerate the development of our domestic capabilities and bridge a vital gap in the aluminum supply chain.”

Officials said the funding averts likely closure of the refinery and affiliated mining operations, preserving approximately 875 direct jobs across refining, mining, logistics, and port operations, including 530 positions at the Gramercy refinery.

The Gramercy facility processes imported bauxite into domestically refined alumina and accounts for roughly 55 percent of U.S. alumina demand. It supplies Century Aluminum smelters in Kentucky, the Mt. Holly smelter in South Carolina, and major manufacturing facilities across Texas, North Carolina, Alabama, Georgia, Illinois, and Mississippi.

The partnership aligns public and private capital to meet urgent national security requirements, aiming to build a resilient domestic aluminum supply chain for the future.