ATALCO to establish large scale gallium plant
ATALCO, the only operating alumina refinery in the United States, has announced a partnership with the US Government to sustain and increase domestic alumina production and establish the country’s first and only large scale primary gallium production circuit in Gramercy, Louisiana.
The company expects to produce over one million metric tons of alumina per year and up to 50 metric tons of gallium per year in Gramercy, Louisiana. Both alumina and gallium are essential minerals for production of aerospace and defence systems, catalysts, semiconductors, and next-generation energy technology.
The partnership also involves Concord Resources Holdings in conjunction with Concord’s majority shareholder, a fund managed by Pinnacle Asset Management, a leading commodities investment firm.
ATALCO said: “Aligning this essential public sector support with private sector investment will secure onshore supply of alumina and gallium, which are contested commodity market segments currently dominated by China. This deal shows how quickly and decisively America can act to ensure long-term national security and economic resilience.”
America's Department of War's Industrial Base Analysis and Sustainment program has invested $150m of preferred equity in ATALCO. Additional funding from the US Government is expected to close within 30 days of the equity closing. Pinnacle’s fund, as the majority shareholder in ATALCO via Concord, has invested more than $300m in private capital.
"For the past decade, our investment philosophy has centered on bolstering the US supply chain for critical minerals and other commodities,” said Jason Kellman, chief investment officer, Pinnacle Asset Management. “This strategic partnership plays an important role in strengthening our country’s critical minerals supply.”
“In addition to the core expansion of the ATALCO facility, this investment unlocks significant growth potential, including increasing the site’s mineral processing and power generation capabilities, all of which contributes to the long-term security of America’s materials supply chain.” said Scott Kellman, managing partner, Pinnacle Asset Management.
