Gallium is a unique silver-white metal with an extremely low melting point, as it can melt in one’s hand. Gallium is utilized in various fields such as military systems, automated driving vehicles, and fast charging for laptops, yet it remains relatively unknown to the public.
Almost all of the gallium worldwide comes from China. Gallium does not exist in elemental form in nature but is mainly obtained as a byproduct through an industrial process called the Bayer process (transforming aluminum ore into alumina).
The Trump administration in the United States intends to change this current situation by investing tens to hundreds of billions of dollars in establishing domestic and international factories to create its own gallium supply chain, reducing reliance on imports from China. One of the key projects the U.S. government is focusing on is the Alcoa gallium project in Wagerup, Western Australia.
The U.S. think tank, the Center for Strategic and International Studies (CSIS), stated in a new report released on July 17, 2025, that the U.S. needs to take action to break the near-total monopoly of gallium by the Chinese Communist Party.
Since the 1980s, Alcoa has been operating an alumina refinery in Western Australia producing alumina from bauxite ore containing trace amounts of gallium. Alcoa plans to build a gallium refinery, with investment from the U.S. government, Western Australia, and Japan. In return, participating governments can obtain a portion of the gallium, as stated by Alcoa.
Alcoa anticipates an annual gallium production of around 100 tons after completion, accounting for 10% of global gallium demand. In 2024, global gallium production was 760 tons. Alcoa’s CEO, William Oplinger, mentioned that the company has long been aware of their ability to extract gallium, and if global demand significantly increases and economic feasibility allows, the company could replicate the production in other plants.
China has been a major producer of critical minerals globally. In 2023, the Chinese Communist Party began imposing export controls on gallium, subsequently completely banning gallium exports to the United States. While the ban was temporarily lifted, it could potentially be reinstated later this year. On February 4, the U.S. and many other governments pledged to invest in expanding the supply of critical minerals to reduce dependence on China.
Over the past two years, gallium benchmark prices outside China have approximately tripled. According to Argus Media, the average price of gallium in January this year reached a historic high, nearly $1572 per kilogram.
To reduce dependence on gallium imports from China, the U.S. is increasing domestic investments to enhance domestic gallium supply. The U.S. Department of Defense and private investment companies plan to invest $1.9 billion to purchase a stake in a joint venture of Korea Zinc Corporation, and jointly develop a zinc mine and build a refinery in the United States.
Korea Zinc intends to extract gallium and other valuable metals from zinc ore smelting residues at a facility in Tennessee and construct a complex metal separation and smelting plant with $4.7 billion in private and government loans. It is expected to produce up to 54 tons of gallium annually starting from 2030.
Another gallium project is the Atlantic Alumina in Louisiana. The company previously lacked the capability to extract gallium from alumina refinery residues, prompting the Department of Defense to invest $150 million to acquire a stake in Atlantic Alumina to support their $450 million gallium expansion project, aiming to produce approximately 50 tons of gallium per year upon completion.
Finnish critical mineral consulting firm Rovjok predicts a 24% increase in global gallium demand by 2030. Rovjok estimates that the production costs of gallium in the U.S. are over 20% higher than in China. Ian Lange, an economics professor at the Colorado School of Mines, stated that the gallium market size is relatively small, and efforts by the U.S. and other countries to boost gallium production may lead to an oversupply of gallium and eventual market collapse.
Some government officials and analysts from various countries pointed out that the Chinese government leverages its market size advantage to flood the critical mineral market, hindering other countries’ investments in domestic production. Bottlenecks in the supply chain during and after the COVID-19 pandemic, along with China’s continuous export restrictions in recent years, have raised gallium prices, compelling other countries to expand their own gallium production capacity to reduce reliance on China.