The Pentagon invested $150 million Sunday in a Louisiana alumina refinery to build what officials say will become the nation’s first large-scale gallium production facility, part of a broader Trump administration push to reduce reliance on China for critical minerals.
The Defense Department partnered with Atlantic Alumina and Pinnacle Asset Management to expand production at the Gramercy refinery, which has operated continuously since 1959 and remains the last alumina refinery of its kind in the United States.
Pinnacle invested more than $300 million in private capital through its subsidiary Concord Resources Holdings, which owns the majority stake in Atlantic Alumina. Additional government funding is expected within 30 days.
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The facility aims to produce more than 1 million metric tons of alumina annually and up to 50 metric tons of gallium per year. Gallium, recovered as a byproduct of alumina refining, is used in military radar systems, satellites and advanced semiconductors.
“This strategic partnership is an essential step in reducing reliance on foreign nations for critical minerals,” Atlantic Alumina said in a statement.
China produces 98% of the world’s gallium and dominates global alumina processing. Beijing banned exports of gallium, germanium and antimony to the United States in December 2024, though it suspended the restrictions in November 2025 until November 2026.
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The US Geological Survey estimated a complete Chinese export ban on gallium and germanium could reduce US gross domestic product by $3.4 billion annually.
The Pentagon invested through its Industrial Base Analysis and Sustainment Program. The deal marks a continued shift by the Trump administration toward purchasing equity in strategic companies instead of providing grants or government-backed financing.
The administration took a 10% stake in chipmaker Intel last year and a 5% stake in Lithium Americas. It also backed mining companies including MP Materials and Trilogy Metals.
The Gramercy refinery accounts for about 40% of US alumina consumption. A neighboring refinery closed in 2020, leaving Atlantic Alumina as the sole US producer. The company processes Jamaican bauxite into alumina, a white powder used in aluminum production.
The expansion will preserve more than 500 jobs at the Gramercy site, where most workers are represented by the United Steelworkers union.
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