US Bets $174 Million on Australia to Break China’s Gallium Grip

US Bets $174 Million on Australia to Break China’s Gallium Grip

The United States is pouring $174 million into a new Australian gallium plant to cut its reliance on China for a metal critical to military tech and smartphone chips.

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The US Department of War announced it will provide $174 million in financing to Alcoa Corp. to build the facility at its existing alumina refinery in Western Australia [232014]. Gallium is a critical mineral used in radar systems, fighter jets, and smartphone chips, and China currently produces most of the world’s supply [232014].

Washington sees this dependence as a supply chain risk and wants a more secure source outside Chinese control [232014]. The plant will extract gallium from the refining process, meaning no new mining is required—just new equipment to capture the metal that is currently wasted [232014]. For Alcoa, the funding lowers the cost of a new venture; for the US, it is a direct step toward reducing dependency on a rival power for a material essential to national defense [232014].

Sources

US bets $174 million on Australia to break China’s gallium grip. #232014

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