Gallium and scandium extraction facility wins $29.9mn US defence-linked funding

Critical Minerals

US defence-linked funding will back a gallium and scandium extraction facility at Element USA. The $29.9mn award targets a demonstration site in Gramercy. As a result, the gallium and scandium extraction facility aims to strengthen supply for strategic industries.

Meanwhile, the project also supports early development work at a Critical Resource Accelerator in Cedar Park. The funding uses Defence Production Act funding to scale extraction from industrial waste. Therefore, US onshoring efforts gain another pathway beyond conventional mining.

Turning bauxite residue into strategic metals

Element USA plans to extract gallium and scandium from industrial bauxite residue. The approach targets stockpiled waste that often carries untapped critical minerals. However, commercial success depends on consistent feed quality and reliable separation performance.

The project positions industrial waste as a domestic supply option. It also links alumina by-products to higher-value metals markets. As a result, refiners and waste handlers may see new incentives to collaborate.

Defence demand reshapes critical minerals strategy

Defence platforms rely on gallium and scandium for high-performance applications. Gallium supports advanced GaAs and GaN semiconductors used in radar and secure communications. Meanwhile, scandium strengthens lightweight alloys used in aircraft and missile structures.

The funding also signals sharper competition for specialised grades. Battery supply chains focus on scale and cost. However, defence supply chains prioritise traceability, performance, and resilience. Therefore, projects like this often target strategic availability before mass-market volumes.

The Metalnomist Commentary

This investment treats waste streams as a strategic resource, not a disposal problem. If the plant proves repeatable yields, it can shorten lead times for defence-grade inputs. However, sustained economics will still hinge on offtake confidence and stable residue supply.