In a strategic pivot highlighting both innovation and geopolitical foresight, global integrated aluminium producing firm Alcoa of Australia Limited, part of Alcoa Corporation, has announced a Joint Development Agreement (JDA) with Japan Australia Gallium Associates Pty Ltd (JAGA) to explore gallium recovery at one of its alumina refineries in Western Australia. JAGA is a venture between Sojitz Corporation and the Japan Organisation for Metals and Energy Security (JOGMEC), both key players in Japan's mineral supply strategy.
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Gallium is a by-product of the refining of bauxite, is essential in semiconductors and has various aspects of defence. For now, China controls around 80 per cent of the gallium supply worldwide. In 2023, it put in place restrictions on exports of gallium, leading many global organisations to source gallium more diversely. Those efforts put Alcoa and its partners in a unique position to influence that global gallium picture.
Strategic fit beyond aluminium
While known primarily for its aluminium and alumina operations, this move reflects Alcoa's broader ambition to monetise untapped value in its existing operations. “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,” said Elsabe Muller, President of Alcoa of Australia.
This statement emphasises a key trend: traditional miners are seeking to reform their position in the critical mineral supply chain where demand and policy incentives intersect.
Similarly, Sojitz has strong relationships with Japanese midstream gallium refiners and has committed as an offtake partner, signalling an important early indicator of commercial viability.
Financial landscape shows contrasts
The announcement of a partnership about gallium comes at a time of reduced financial returns for Alcoa. In Q2 2025, the company reported revenue of USD 3.02 billion, a decline of 10.41 per cent from Q1. Net income plummeted to USD 164 million, a decline of 70 per cent from Q1's USD 548 million. Also, adjusted EPS dropped from USD 2.15 to USD 0.39. This raised investor questions about the resiliency of future earnings.
While the JDA is unlikely to have a material impact on Alcoa's near-term financials, it sends a signal for the long haul: the company is establishing the foundation for strategic diversification in critical minerals with a start-up date of 2026.
Industry significance and broader implications
Australia, the US and Japan all flag gallium as a critical mineral, connecting resiliency in these supply chains to national security and leadership in technology. If the project leads to production, it will be one of the few gallium sources outside of China (potentially adding geopolitical value beyond economic value).
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