The Trump administration invests $150 million in ATALCO to secure the supply of critical mineral gallium.

The Trump administration will support the construction of the only large gallium producer in the United States through a $150 million equity investment. Gallium is a key mineral used in satellite systems and military radar. The U.S. Department of Defense, along with affiliated companies of Pine High Asset Management, plans to announce a strategic partnership involving Atlantic China Welding Consumables, Inc.s alumina plant (ATALCO) on Monday. The company has been processing bauxite near New Orleans into alumina since the late 1950s. Alumina is a fine white powder used in the production of aluminum. This transaction is the latest example of the Trump administration directly investing in companies it considers crucial to U.S. national security. Last year, the government acquired shares in chip manufacturer Intel Corporation and negotiated for "golden shares" in the United States Steel Corporations acquisition of New Japan Iron Company. According to a statement, the U.S. Department of Defense has invested $150 million in preferred shares in ATALCO. The company will use this funding, along with an additional $300 million provided by Pine High, to increase alumina production and "establish the first and only large-scale gallium production system in the United States." It is expected that the U.S. government will provide "additional funding" within 30 days of the completion of the transaction. ATALCO stated: "This strategic partnership is an important step towards reducing reliance on foreign sources for critical minerals." This move aligns with Commerce Secretary Howard Lutnick's efforts to increase the supply of rare earths and critical minerals. Last year, the Trump administration also assisted a U.S. private company in acquiring a majority stake in Kazakhstan's largest undeveloped tungsten resources. The statement said that ATALCO, held by Pine High's Concord Resources Holdings, is expected to eventually produce over 1 million tons of alumina annually and up to 50 tons of gallium. The funding will be used to "revitalize" its production base in Gramercy, Louisiana, which should be able to meet "all of the United States gallium needs." Alumina and gallium are crucial for producing aerospace and defense systems, semiconductors, and energy-related technologies. The U.S. Department of Defense's investment through the "Industrial Base Analysis and Sustainment Program" aims to strengthen the U.S. industrial base. Headquartered in New York, Pine High manages over $6 billion in assets. Pine High's Chief Investment Officer Jason Kalman stated in the announcement: "For the past decade, our investment philosophy has revolved around strengthening the supply chain of critical minerals and other commodities in the United States." Pine High Managing Partner Scott Kalman added: "In addition to the core expansion of the ATALCO facility, this investment will unlock significant growth potential, including enhancing the sites mineral processing and power generation capabilities, all of which contribute to the long-term security of the U.S. materials supply chain."