Facility targets alternative semiconductor supply chain
Alcoa and the governments of the United States, Australia, and Japan will build a gallium production facility co-located at Alcoa’s Wagerup alumina refinery in Western Australia, the company said Tuesday. The project received a final investment decision from the three governments and is intended to create an alternate source of gallium, a critical mineral used in semiconductors and defense applications, as the U.S., Australian, and Japanese governments seek to diversify supply chains.
Alcoa will construct and operate the gallium plant at its Wagerup refinery, with construction expected to begin after final site preparations are completed, according to the company. Alcoa Chief Executive William Oplinger said the project reflects a joint effort by governments and industry to strengthen critical mineral supply chains and highlights the strategic importance of the company’s operations in Western Australia.
Alcoa said its participation in the joint venture is not expected to have a material impact on its financial position or results of operations.