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

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.