In hopes of guarding against gallium material supply-chain issues, the U.S. Department of War (DoW) has secured an estimated $174 million in equity financing. This will help ensure a steady available flow of gallium as required for products using compounds such as gallium nitride (GaN) and gallium arsenide (GaAs).

The financing was executed by the Office of the Assistant Secretary of War for Industrial Base Policy (OASW (IBP)) via the Industrial Base Analysis and Sustainment (IBAS) program. It's been arranged with a multinational partnership consisting of Export Finance Australia (EFA), the Government of Japan, and Sojitz Corp., and will support Alcoa of Australia and its Wagerup alumina refinery. Expectations are 100 metric tons of gallium metal to be produced per year. 

Gallium (see image above) is part of RF/microwave and optical semiconductors used throughout military electronic systems, including for communications and radars. It also enables solar cells and missile guidance systems. Thus, a continuous supply of the material is critical to the continued production of these electronic systems for aviation, maritime, and terrestrial applications.

Since it began in 2014, IBAS has invested over $2.6 billion across more than 200 projects to restore and strengthen the defense industrial base.

The Honorable Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy, explained the significance of the financing. “This landmark agreement with our key allies, Australia and Japan, will secure a vital supply of gallium for our defense industrial base, strengthening our collective security and economic resilience for years to come.”