The Department of War (DOW) announced today an estimated $174 million* equity financing investment to construct 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 (OASW(IBP)) via the Industrial Base Analysis and Sustainment (IBAS) program, the initiative is a multinational partnership with Export Finance Australia (EFA), 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.
*Note: Final USD 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 the high-performance semiconductors underpinning critical defense capabilities. These include 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. Gallium is also critical for the solar cells that power military and civilian satellites. Securing a reliable supply of gallium is essential for the DOW, and this project works to build long-term resilience in the existing global supply chain.
Since its inception in 2014, the IBAS program has invested over $2.6 billion across more than 200 projects to restore and strengthen the defense industrial base.
About the Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP))
The OASW(IBP) works with domestic and international partners to forge and sustain a robust, secure, and resilient industrial base enabling the warfighter, now and in the future. OASW(IBP)'s Warfighting Investments, Resourcing, and Execution (WIRE) 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 DOW with key capabilities to strengthen the U.S. industrial base in line with national security requirements.