Alcoa bets on gallium with Australia, Japan, US backing

Alcoa reached a final investment decision to build a gallium production plant at its Wagerup alumina refinery in Western Australia, backed by the governments of Australia, Japan and the US.

The project aims to produce gallium, a metal used in semiconductors and defense applications, as a byproduct of alumina refining. China controls roughly 80% of global gallium supply and imposed export restrictions in 2023, spurring Western governments to fund alternative sources.

Alcoa's Alpha Score sits at 71/100, rated Moderate, on the AA stock page. The company operates the Wagerup refinery as part of its Australian alumina network.

No timeline or capacity figures for the gallium plant were disclosed. Alcoa said the project will proceed with financial support from the three governments, though it did not specify the funding split or total investment cost.