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

The United States is funding a new gallium plant in Australia, a move aimed at loosening China’s stranglehold on a metal vital for military tech and semiconductors. The US Department of War announced it will provide $174 million in financing to Alcoa Corp. The company will build the facility at its existing alumina refinery in Western Australia. Gallium is a critical mineral. It is used in radar systems, fighter jets, and smartphone chips. Currently, China produces most of the world’s supply. Washington sees this as a supply chain risk. By backing production in Australia, a close ally, the US wants a more secure source outside Chinese control. The plant will extract gallium from the refining process. This means no new mining is required, just new equipment to capture the metal that is currently wasted. 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.