Alcoa reaches FID on gallium plant in Australia with US, Japan backing

Charles Kennedy Wed, July 15, 2026 at 1:30 AM PDT | 2 min read

• AA: -3.87%
• ALI=F: +1.26%

Alcoa, together with the governments of Australia, Japan, and the United States, has reached a final investment decision to develop a gallium production plant at the company's Wagerup alumina refinery in Western Australia. The project marks a new effort to diversify global supplies of the critical mineral.

The facility will be built and operated by Alcoa, leveraging its expertise in alumina refining and mineral processing. Once operational, the plant is expected to provide a new source of gallium—a material used in semiconductors, power electronics, and defense technologies—helping to reduce reliance on the highly concentrated global supply chain.

Construction is expected to begin after final site preparations are completed. Alcoa stated that its participation in the project, including its role as construction and operating manager, is not expected to have a material impact on its financial position or operating results.

Chief Executive Officer William Oplinger said the investment reflects a joint commitment by governments and industry to strengthen critical mineral supply chains, while highlighting the strategic importance of Western Australia in supplying materials essential to advanced technologies.

The project comes as the United States, Japan, and Australia deepen cooperation to secure supplies of critical minerals amid growing geopolitical concerns over China's dominance in the processing and production of materials such as gallium. China accounts for the vast majority of global primary gallium output and has tightened export controls on the metal in recent years, prompting governments and manufacturers to seek alternative sources.

The Wagerup project leverages gallium extraction from the alumina refining process, enabling production alongside existing operations rather than developing a standalone mine. The initiative aligns with broader efforts by Western allies to build more resilient supply chains for minerals considered essential to the energy transition, advanced manufacturing, and national security.

By Charles Kennedy for Oilprice.com

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