GRAMERCY, La. — A major federal-backed investment centered in St. James Parish is positioning Louisiana as a cornerstone of the nation’s critical alumina and gallium and defense supply chain. Atlantic Alumina Company LLC (ATALCO), the only operating alumina refinery in the United States, has announced a $450 million strategic partnership with the U.S. Department of Defense and private investors to expand domestic alumina production and establish the country’s first large-scale primary gallium production circuit at its Gramercy facility.
The partnership brings together ATALCO, Concord Resources Holdings Limited and a fund managed by Pinnacle Asset Management, with $150 million in preferred equity invested through the Department of Defense’s Industrial Base Analysis and Sustainment program. Additional federal funding is expected to close within 30 days. Pinnacle, through Concord, has invested more than $300 million in private capital.
The project is intended to secure U.S. supplies of alumina, a key input for aluminum production, while adding new domestic capacity for gallium, a critical mineral used in aerospace systems, advanced semiconductors and defense technologies. Global gallium markets are currently dominated by China.
Commissioned in 1959, ATALCO’s Gramercy refinery supplies alumina used in aerospace, defense and automotive manufacturing, as well as chemical-grade alumina for oil and gas refining catalysts, refractories, fire suppressants, semiconductor components and municipal water treatment.
With the expansion, ATALCO expects to produce more than one million metric tons of alumina per year and up to 50 metric tons of gallium annually, supported by a workforce of approximately 500 employees represented by the United Steelworkers.
“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,” the company said in a statement. “This deal shows how quickly and decisively America can act to ensure long-term national security and economic resilience.”
State Leaders Cite National Security, Industrial Impact
Gov. Jeff Landry said the investment underscores Louisiana’s role in strengthening the nation’s industrial base and advancing domestic manufacturing tied to national security.
“This announcement marks a significant win for Louisiana and for the nation,” Landry said. “ATALCO’s $450 million strategic partnership with the United States government will revitalize a critical industrial facility, retain skilled jobs and position America to produce essential materials domestically at a time when supply chain security has never been more important.”
Louisiana Economic Development Secretary Susan B. Bourgeois said the project reflects the state’s focus on aligning with federal priorities to rebuild critical industrial capacity.
“By strengthening U.S. alumina production and launching the country’s first large-scale primary gallium production capability, this project advances national security, supports advanced manufacturing and reduces dependence on foreign supply chains dominated by China,” Bourgeois said.
Landry also thanked President Donald Trump and federal partners for prioritizing domestic manufacturing and said the investment demonstrates alignment between federal priorities and state-level execution.
Private Capital Sees Long-Term Strategic Value in Alumina
Pinnacle executives said the investment aligns with the firm’s long-term focus on critical minerals.
“For the past decade, our investment philosophy has centered on bolstering the U.S. supply chain for critical minerals and other commodities,” said Jason Kellman, chief investment officer at Pinnacle Asset Management. “This strategic partnership plays an important role in strengthening our country’s critical minerals supply.”
Scott Kellman, managing partner at Pinnacle Asset Management, said the investment also creates opportunities to expand the site’s capabilities beyond the core facility.
“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,” Kellman said.
The Gramercy refinery is expected to play a foundational role in broader efforts to expand domestic critical mineral processing in Louisiana, including downstream projects that plan to process bauxite residue generated by alumina refining.
