Australian, US governments to invest in Wagerup gallium project

A plan by Alcoa and others to produce gallium alongside alumina at an existing Western Australian refinery has received a boost, with the Australian government making a $307 million financial commitment in the Alcoa-Sojitz Gallium Recovery Project in Wagerup following the meeting of the US’s and Australia’s leadership.

A Joint Development Agreement by the Japan Australia Gallium Associates (JAGA) JV of the Japanese Government and Sojitz Corporation with Alcoa was announced in August.

Alcoa said on Tuesday that, following completion of feasibility assessments, it expects a joint U.S., Australia and Alcoa special purpose vehicle (“SPV”) to enter into the JV with JAGA to build the gallium plant. It would be operated by Alcoa and have a planned annual capacity of 100 metric tons of gallium, the company said.

The Australian government announced “up to [$US] 200 million [approximately $307 million] in concessional equity finance for the project,” including a right of offtake for the Australian government. The United States Government is also making an equity investment with a right of offtake.

“Today’s announcement confirms support for the gallium joint venture” said Alcoa in a statement following the meeting between US president Donald Trump and Australian prime minister Anthony Albanese at the White House.

“Under the terms of the non-binding agreement, the U.S. and Australian governments and Alcoa would provide capital to the SPV and receive gallium offtake in proportion to their interests.

“Among other purposes, the capital would be used for preparation of final feasibility studies, and the development and construction of the project.”

Gallium supports semiconductor, defence and other industries, and is considered a critical mineral in Australia, the US and other nations. China, which has a near-monopoly on supply, introduced market controls in 2023, increasing interest in alternative sources.

The prime minister and president signed a bilateral framework on critical minerals and rare earths on Tuesday morning (Australian time.)

“Australia is home to much of the periodic table of critical minerals and rare earth metals that are vital for defence and other advanced technologies,” said Albanese.

“Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States as strategic defence allies.”

Complementing the framework (accessible here) is a commitment to “each provide at least USD$1 billion in investments towards an USD$8.5 billion pipeline of priority critical minerals projects” in both countries over the next six months, with the first of these at Wagerup.

A second project, the Arafura Nolans project in the Northern Territory, will receive a $US 100 million equity investment, the Australian government said. It will produce as much as 5 per cent of the world’s rare earths once operational.

Picture: Gallium crystals (credit foobar, CC BY-SA 3.0)