Alcoa of Australia will operate the facility through a multinational partnership with Export Finance Australia, the Japanese government and Sojitz Corporation. The investment is being managed by the Office of the Assistant Secretary of War for Industrial Base Policy through the Industrial Base Analysis and Sustainment program.
“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 Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy. The department said the project was intended to provide long-term resilience within the existing global gallium supply chain.
Gallium is used in high-performance semiconductors that support advanced radars aboard aircraft and ships. It is also required for ground-based missile defense systems and secure satellite and tactical communications.
Other applications include electro-optical and infrared sensors used for missile guidance and thermal imaging. Gallium is also used in solar cells that power military and civilian satellites.
The dollar value of the investment remains subject to exchange-rate movements when the transaction is completed. The financing structure gives the department an equity position in a facility operated by Alcoa in partnership with Australian and Japanese participants.
The Industrial Base Analysis and Sustainment program has invested more than $2.6 billion across over 200 projects since its creation in 2014. Its investments are intended to restore and expand production capacity supporting the defense industrial base.
