War Department announces $85.5 million agreement with Strategic Bauxite USA to secure critical refractory-grade bauxite supply chain

The Department of War’s Economic Defense Unit, working with the Office of the Assistant Secretary of War for Industrial Base Policy, announced an $85.5 million equity investment in Strategic Bauxite USA, LLC through the Industrial Base Analysis and Sustainment program to establish a secure, vertically integrated U.S. supply chain for refractory-grade bauxite.

“Our defense readiness relies on secure, regional access to critical minerals,” said the Honorable Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy. “This partnership with Strategic Bauxite through the equity funding and analysis provided by the IBAS program ensures that critical materials in the western hemisphere stay in supply chains that protect the United States and its allies.”

The department’s funding is paired with a $64.5 million private co-investment. Together, the capital will help acquire and expand the First Bauxite mine in Guyana, develop new calcination facilities for primary processing, and support a follow-on project to build a brown-fused alumina facility in the United States.

The initiative aims to reduce an over-reliance on imports of refractory-grade bauxite, the majority of which is currently sourced directly from China or Chinese-owned entities. Once fully operational, the project is expected to meet 100% of U.S. military demand for brown-fused alumina and 100% of U.S. demand for refractory bauxite. IBAS equity and direct investments are directed at critical supply chain bottlenecks where private venture capital has been hesitant to invest due to long development timelines.

“The Department of War is no longer waiting for supply chain dependencies to be exploited,” said George K. Kollitides II, Director of the Economic Defense Unit. “This agreement shows how EDU and the Department can partner with the commercial sector to rapidly turn opportunities into advantages for the warfighter.”

Refractory-grade bauxite is used to manufacture high-temperature-resistant materials for components such as heat shields, thermal barriers, and turbine engines in guided missiles, rockets, military aircraft, and space systems. It is also a key raw material for steel and aluminum production, energy infrastructure, and industrial furnaces.

The agreement reflects broader interagency coordination to support national security requirements. The Department of State provided funding for infrastructure associated with the project to enable rapid action and reinforce the long-term viability of the supply chain.