Pentagon Invests $150M in Louisiana Gallium Firm to Secure Supply Chains
The Pentagon has invested $150 million in Atlantic Alumina to bolster U.S. defense material supply chains and reduce reliance on Chinese gallium, which is expected to dominate 99% of the market by 2025. Additionally, Pinnacle will contribute $300 million to Atalco, which plans to produce over 1 million tons of alumina and 50 tons of gallium annually. The U.S. government is also set to invest $7.4 billion in a gallium processing plant by Korea Zinc as part of a broader strategy to enhance critical mineral resources.
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The Pentagon has acquired a $150 million stake in Atlantic Alumina to enhance defense material supply and reduce Chinese dominance. Pinnacle will invest an additional $300 million in Atalco, which aims to produce over 1 million tons of alumina and 50 tons of gallium annually.
The U.S. government announced a $7.4 billion investment in a gallium processing plant by Korea Zinc. China's share of refined gallium is projected to be 99% by 2025. The Trump administration plans to spend $7.5 billion on critical minerals, with $2 billion for defense stockpile enhancement by 2026 or 2027. Western investors are also looking to establish alternative gallium production.
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