UPDATE: The Trump administration has just announced a significant investment of $150 million in Atlantic Alumina (ATALCO) to bolster the U.S. supply of critical minerals, including alumina and gallium. This urgent move by the U.S. Department of Defense aims to enhance domestic production capabilities as global competition intensifies, particularly against China, which dominates the market.
The partnership is set to expand ATALCO’s alumina output and establish the “first and only large-scale primary gallium production circuit” in the nation. ATALCO has been operational in Louisiana since 1959, and under this new funding, the firm anticipates producing over one million metric tons of alumina and up to 50 metric tons of gallium annually.
This investment is part of the U.S. strategy to reduce reliance on foreign supplies. Currently, China controls approximately 60% of global alumina and more than 90% of the world’s primary gallium supply, crucial for manufacturing semiconductors and advanced technology used in aerospace and defense systems.
In a statement, ATALCO emphasized the importance of aligning public sector support with private investment, stating, “Aligning this essential public sector support with private sector investment will secure onshore supply of alumina and gallium, which are contested commodity market segments currently dominated by China.”
Additionally, Pinnacle, ATALCO’s majority shareholder through its subsidiary Concord Resources Holdings, has already invested over $300 million in this partnership. This deal reflects the Trump administration’s growing trend of taking direct equity positions in strategically vital companies rather than relying solely on traditional subsidies.
This investment follows last year’s acquisition of a 10% stake in chipmaker Intel, further illustrating the administration’s commitment to advancing U.S. interests in critical technology sectors. In recent months, the Department of Energy also announced a 5% stake acquisition in Lithium Americas, a company focused on lithium production for electric vehicle batteries.
As the global race for critical minerals escalates, this deal signals the Trump administration’s proactive approach to securing essential resources for the future. Expect further developments as additional government funding is anticipated within the next 30 days.
Stay tuned for more updates as this story unfolds, and consider sharing this urgent news with your network.
