Why did Alcoa (NYSE:AA) approve the construction of the new gallium plant?

Alcoa (NYSE:AA) approved the project to strengthen critical mineral supply chains and diversify global sourcing following Chinese export controls on the metal.

What are the expected production volumes for the Alcoa (NYSE:AA) facility?

Alcoa (NYSE:AA) stated that the new plant is forecast to produce approximately 100 tonnes of gallium annually. The company expects this output to satisfy roughly 10% of the total global demand for the metal.

How is the new Alcoa (NYSE:AA) project being funded?

The project is funded via a partnership between Alcoa (NYSE:AA) and international governments, including undisclosed financing from the Australian government.

What does the new facility mean for the Alcoa (NYSE:AA) production process?

Alcoa (NYSE:AA) will extract the gallium as a industrial by-product from its existing bauxite and alumina refining operations at the Wagerup site. This processing method allows the company to capture the soft metal without establishing a separate, standalone mining operation.

How did the stock market react to the Alcoa (NYSE:AA) announcement?

Following the public announcement of the project, the Alcoa (NYSE:AA) share price remained unchanged at $40.50. The market stability followed the confirmation of the critical minerals pact prioritisation by Australian and United States leadership.

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Alcoa approves Western Australia gallium plant construction

Written by Heidi Cuthbert Published Jul 15, 2026, 4:44 AM

Alcoa (NYSE:AA) has approved the construction of a new gallium plant at its Wagerup alumina refinery.
The plant aims to supply 100 tonnes of gallium annually, representing 10% of global demand.
The project aims to diversify critical mineral supply chains following Chinese export restrictions on the metal.

Alcoa (NYSE:AA) approved the construction of a gallium plant at its Wagerup alumina refinery in Western Australia to strengthen critical mineral supply chains.

The decision follows a year-long feasibility process amid efforts by Western nations to counter China's dominance in the global gallium market.

"This final investment decision reflects a shared commitment by governments and industry to strengthen critical mineral supply chains among the partners," said Alcoa CEO William Oplinger.

The company stated that the plant will produce approximately 100 tonnes of gallium annually as a by-product from its existing bauxite processing operations.

The project received prioritisation under a critical minerals pact signed by Australian Prime Minister Anthony Albanese and United States President Donald Trump.

Following the announcement, the Alcoa share price was unchanged at $40.50.

The Australian government is funding its undisclosed share of the venture through Export Finance Australia under the nation's Critical Minerals Facility.

Alcoa approves Western Australia gallium plant construction

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