HOUSTON, September 1 (Argus) - The US Department of Defense said on Monday that as part of an equity financing deal, the US Department of Defense will invest approximately $144 million to support the construction of a new gallium production facility operated by US Aluminum (Alcoa). The facility is located adjacent to its Wagerup alumina refinery in Western Australia.
The facility is expected to produce 100 tons of metallic gallium per year.
Alcoa broke ground in August after reaching a final financing decision for the facility with several government and industry partners in July.
The company previously stated that the US and Australian governments would "receive the purchase of gallium in proportion to their (investment) interests".
The factory was initially announced as part of the mineral deal between the US and Australia in October last year.
Argus assessed the main landed price of 99.99% gallium in Europe at $3,000 - $3,300 per kilogram on Tuesday, setting a new record high. Since China imposed export controls on metals on August 1, 2023, the price of gallium in Europe has risen by 820%.
According to data from the US Geological Survey, China produced approximately 99% of the world's primary gallium in 2025, about 900 tons.
