US, Australia to invest $2 billion in critical minerals, advance Alcoa gallium project (October 21)

The governments said they would also help advance a plan by U.S. aluminium producer Alcoa AA.N to build a gallium plant alongside its alumina refinery in Western Australia that could provide up to 10% of global gallium supply.

That announcement pushed Alcoa's Australian-listed shares 8% higher.

Gallium, recovered as a byproduct during the alumina refining process, is a critical mineral for the technology sector, especially the semiconductor and defense industries.

Australia said in a statement that it would provide up to $200 million in concessional equity financing for the project, which includes offtake rights for the Australian government, while the U.S. would also make an equity investment with offtake rights.

Alcoa in August signed a joint development agreement with Japan Australia Gallium Associates (JAGA), a venture between the Japanese government and Sojitz Corp 2768.T, for the project.