Alcoa to boost Australia’s gallium supply

Alcoa (ASX: AAI) has confirmed a joint development agreement (JDA) with Japan Australia Gallium Associates (JAGA) to explore the feasibility of a gallium project in WA.

The project will be co-located at one of Alcoa’s operating alumina refineries.

Subject to further commercial agreements and regulatory approvals, Alcoa and JAGA are targeting a final investment decision (FID) by the end of 2025 with production targeted for 2026.

Gallium is recognised as a critical mineral by Australia and the US. Japan has also identified the mineral as one of the 35 minerals important to its national security.

Production of the mineral is currently concentrated in China with market controls introduced in 2023 heightening global interest in alternative supply chains.

According to JOGMEC, Japan imported 97t of gallium out of the 167t that the country consumed in 2021. Of the total imports, 57% was sourced from China.

Alcoa Australia president Elsabe Muller says the JDA partners are assessing the potential for a co-located facility to expand global supply of gallium as an existing by-product of the alumina refining process.

“This opportunity could deliver additional value from our established operations and further demonstrate how Alcoa’s longstanding mineral processing capabilities can be significant in supporting state, national and global objectives in technology and national defence,” she said.

“We welcome the opportunity to work with the JAGA partners, including Sojitz, who has considerable connection with midstream gallium refiners and manufacturers and would be an offtake customer in the project.”

JAGA, a joint venture between Sojitz Corporation (Sojitz) and Japan Organization for Metals and Energy Security (JOGMEC), aims to diversify the sources of gallium to reduce reliance on imports from China.

Sojitz metals, resources and recycling divisional chief operating officer Osamu Matsuura comments.

“The project has the potential to introduce supply options Japanese semiconductor production critical to global downstream processing and manufacturing,” he said.