Alcoa Just Beat China's Gallium Monopoly: Inside the New Wagerup Plant Backed by the US, Japan, and Australia

On July 14, 2026, Alcoa Corporation, together with the governments of Australia, Japan, and the United States, announced a final investment decision (FID) for a gallium production plant co-located at Alcoa's Wagerup alumina refinery in Western Australia . This is the first major multilateral gallium project outside China and marks a coordinated effort to break China's near-total dominance of global gallium supply — a critical mineral for semiconductors, defense electronics, and advanced communications.

Expected output and global share

The plant is expected to produce approximately 100 metric tonnes of gallium annually as a by-product of existing bauxite processing at Wagerup . This volume represents roughly 10% of current global gallium supply, according to both Alcoa management and Reuters . Alcoa had previously referred to the figure as "almost 10%" of global supply .

Joint venture structure — Japan Australia Gallium Associates (JAGA)

In August 2025, Japanese trading house Sojitz Corporation and the Japan Organization for Metals and Energy Security (JOGMEC) established a joint venture company, Japan Australia Gallium Associates Pty Ltd (JAGA), to conduct a joint development study for gallium production in Australia . Alcoa of Australia (a subsidiary of Alcoa Corp) subsequently reached a joint development agreement with JAGA to advance the Wagerup project . Under the FID, Alcoa will construct and operate the plant, serving as construction and operating manager for the venture . The official Alcoa press release notes the company's participation in the joint venture is not expected to have a material financial impact .

U.S.-Australia Critical Minerals Framework and financing

In October 2025, U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed a landmark U.S.-Australia Critical Minerals Framework at the White House, committing each country to invest at least $1 billion in new mining and processing projects within six months, with total commitments exceeding $2 billion . Some reporting puts the broader framework value at $8.5 billion across multiple projects . Export Finance Australia (EFA) is providing funding support for Australian critical minerals projects under the framework . On the same day the framework was signed, the U.S. Export-Import Bank (EXIM) announced seven Letters of Interest (LOIs) totaling more than $2.2 billion to advance U.S.-aligned critical minerals projects in Australia . The Alcoa gallium project is among the key projects benefiting from this financing architecture.

Countering China's gallium dominance and export restrictions

China accounts for approximately 89% of worldwide primary low-purity gallium production capacity, per the USGS . In August 2023, China imposed export controls on gallium and germanium, requiring special export licenses — a move widely interpreted as a means to weaponize its near-monopoly for geopolitical leverage. The Wagerup gallium plant is designed to create a new, non-China source of supply for allied nations, directly addressing that vulnerability . Prime Minister Albanese described the project as "game changing" and "transformative" for critical mineral supply chains .

Construction timeline

Alcoa said construction activities are expected to commence following final site preparations . No specific operational date has been announced in the FID press release, though earlier signals from 2025 targeted production by the end of 2026 . The WSJ reported the plant "will be built and operated by Alcoa" without specifying a completion year in the FID coverage .

Broader multilateral significance

The project is a flagship initiative under the Australia-Japan Joint Declaration on Economic Security Cooperation, which elevated critical minerals as a core pillar of the bilateral relationship in May 2026 . Gallium is essential for gallium nitride (GaN) semiconductors, which are used in 5G/6G infrastructure, radar, military communications, satellite systems, and power electronics for electric vehicles . ICs accounted for 74% of domestic U.S. gallium consumption and optoelectronic devices for 25% . By establishing gallium production within allied supply chains, the project reduces strategic dependence on China for both commercial semiconductor manufacturing and defense applications, and provides a template for future multilateral critical mineral partnerships involving Australia, Japan, and the United States.