Atlantic Alumina partners with US government on alumina, gallium production

Atlantic Alumina Co. LLC (ATALCO), which operates the only U.S. alumina refinery, has announced a partnership to sustain and increase domestic alumina production and establish the country’s first and only large-scale primary gallium production circuit in Gramercy, Louisiana. Partners in the effort include the U.S. Department of Defense (which the Trump administration refers to as the Department of War) and Concord Resources Holdings Ltd. in conjunction with Concord’s majority shareholder, a fund managed by Pinnacle Asset Management L.P.

Both alumina and gallium are essential minerals for producing aerospace and defense systems, catalysts, semiconductors and next-generation energy technology, the company says.

ATALCO says the investment in the Gramercy site will secure more than 500 U.S. jobs in Louisiana as it brings its existing facility back to nameplate production while designing and constructing a new gallium production circuit. This strategic partnership is an essential step in reducing reliance on foreign nations for critical minerals.

Since 1959, ATALCO-produced alumina has been the essential raw material for making the primary aluminum required for American aerospace, defense and automotive supply chains, while the its chemical grade alumina has supplied important industries aligned with the national interest, including catalysts for oil and gas refineries, refractories, fire suppressants, ceramic casing for semiconductors and municipal water treatment, the company says.

ATALCO expects to produce more than 1 million metric tons of alumina per year and up to 50 metric tons of gallium per year with its 500-strong, uniquely skilled, majority-United Steelworkers workforce in Gramercy.

“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,” ATALCO says. “This deal shows how quickly and decisively America can act to ensure long-term national security and economic resilience.”

The Department of Defense Industrial Base Analysis and Sustainment program has invested $150 million of preferred equity in ATALCO. Additional funding from the U.S. government is expected to close within 30 days of the equity closing, the company says. Pinnacle’s fund, as the majority shareholder in ATALCO via Concord, has invested more than $300 million in private capital.

"For the past decade, our investment philosophy has centered on bolstering the U.S. supply chain for critical minerals and other commodities,” says Jason Kellman, chief investment officer, Pinnacle Asset Management of New York. “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 contribute to the long-term security of America’s materials supply chain,” adds Scott Kellman, managing partner, Pinnacle Asset Management.