11 FEBRUARY 2026AlCircle.com

US gallium strategy: A supply network to weaken China’s critical mineral monopoly

4 min read

Gallium, an easy-to-melt critical mineral, has been emerging as a strategic resource in defence, semiconductor, and electric vehicle supply chains. At present, with the majority of gallium supply originating from China, the United States is motivated to accelerate efforts to diversify its sourcing. The Trump administration is committing a massive investment to form a domestic and allied gallium supply network to reduce reliance on Chinese critical mineral sources.

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A major project in the works is Alcoa’s Wagerup refinery in Western Australia, where trace gallium found in bauxite is to be extracted through a newly designed processing plant. Apart from the EU-US critical mineral alliance, this is a joint initiative by the US, Australia, and Japan, with portions of the output to be awarded to the participant governments.

The facility would produce around 100 tonnes annually, catering to approximately 10 per cent of global demand, as worldwide gallium production reached 760 tonnes in 2024. Alcoa CEO William Oplinger stated, “We’ve been very aware that gallium can be extracted out of our process for a number of years…We could do this at other refineries if the world needs significantly more gallium and the economics support it.”

Trump administration's strategic requirement for gallium

The initiative corresponds to the US’s efforts to secure critical minerals like lithium, cobalt, and nickel for automotives, defence and technology. The priority heightened after China’s export controls on gallium in 2023, followed by its shipment ban to the US, which, though currently suspended, could potentially return.

Addressing market imbalances, US Vice President JD Vance remarked, “We see telltale signs of a market distorted beyond recognition, one that punishes strategic investment, one that punishes diversification.” Since China’s restrictions, gallium prices outside China have almost tripled, with January 2026 prices averaging a record high of USD 1,572 per kg.

The root of gallium’s strategic value lies in high-performance semiconductors. Heat, power tolerance, and moisture resistance have proved it to be more efficient than silicon. It is also widely used in satellites, laptops, smartphones, and fast chargers.

Australia is also prioritising gallium in its proposed USD 800 million critical minerals reserve. Mining Minister Madeleine King mentioned, “There’s a lot of work to be done on how we do collaborate and work together to develop this industry.” Emphasising its urgency, she added, “We should have done it 20 or 30 years ago.”

Also read: NALCO’s gallium plan remains on paper - a missed opportunity as critical minerals race heats up?

Domestic critical mineral projects by the US government

Simultaneously, the US is expanding domestic recovery projects. An equity stake of USD 1.9 billion by the Defence Department with Korea Zinc will support gallium extraction from zinc-processing residues in Tennessee, targeting 54 tonnes per annum by 2030, alongside a USD 4.7 billion smelter expansion.

Meanwhile, Atlantic Alumina’s Louisiana refinery plans to recover gallium from red mud waste, backed by the Trump government’s equity investment of USD 150 million in a USD 450 million expansion plan. The project aims to produce 50 tonnes annually as part of it.

Cautionary note by experts on oversupply

However, experts caution against potential oversupply. Ian Lange, Economics professor at the Colorado School of Mines, warned, “The market is so small it would crash.” At the same time, the Finnish critical mineral consultancy Rovjok projects global gallium demand to rise 24 per cent by 2030, despite US production costs being over 20 per cent higher than China’s.

China’s dominance stems from its rapid aluminium and alumina capacity expansion, with gallium recovery involved in refining processes. Analysts note that oversupply strategies and export controls have discouraged global competition, contributing to price volatility that has escalated since pandemic-era supply disruptions.