GRAMERCY, La. — ElementUSA has announced plans to invest $850 million to develop a rare earth and critical minerals refining facility in St. James Parish, a project aimed at strengthening domestic supply chains for materials used in advanced manufacturing, national defense and energy technologies.
The project is expected to create 200 direct new jobs with an average annual salary of $90,000, about 28% above the average wage in St. James Parish. Louisiana Economic Development estimates the facility could generate an additional 554 indirect jobs, bringing total potential job creation to 754 positions in the region.
Critical Minerals Production and Federal Support
ElementUSA will use proprietary extraction processes to recover gallium, scandium, iron and other critical minerals from more than 30 million tons of bauxite residue — a byproduct of alumina refining — positioning the project as part of a broader ecosystem supporting domestic critical mineral production.
Supported by a $29.9 million grant from the U.S. Department of Defense, the company will initially construct a demonstration facility to validate its extraction technology and inform the design of a future commercial-scale plant.
“We are humbled and energized by the Department of War’s trust in ElementUSA at this pivotal moment for America’s critical minerals landscape,” said ElementUSA CEO Ellis Sullivan. “This project in Gramercy will demonstrate how the United States can produce gallium and scandium at scale using innovative extraction technologies, reducing foreign dependence and ensuring our warfighters and industries have reliable access to these strategic materials.”
State and Regional Economic Impact
Gov. Jeff Landry said the project reinforces Louisiana’s role in securing America’s industrial future.
“ElementUSA’s investment marks a major step in strengthening America’s critical minerals supply chain, and Louisiana is proud to play a leading role in that effort,” Landry said. “This project advances essential mineral production in the United States and positions Louisiana’s workers and communities at the forefront of a rapidly growing industry.”
Michael Hecht, president and CEO of Greater New Orleans, Inc., said the project strengthens Louisiana’s standing in advanced manufacturing.
“ElementUSA’s investment in Gramercy is a game-changer for the region, strengthening Louisiana’s role in advanced manufacturing while securing a domestic supply of critical minerals used in defense operations,” Hecht said.
Louisiana Economic Development Secretary Susan B. Bourgeois said the project reflects the state’s long-term strategy to convert interest into investment.
“By strengthening our competitiveness, aligning agencies through a whole-of-government model, and listening directly to companies, we’ve built the conditions that turn interest into investment,” Bourgeois said.
Construction of the demonstration facility is expected to begin in mid-2027, with initial production targeted for the third quarter of 2028. ElementUSA plans to use the demonstration phase to guide development of a commercial-scale plant capable of processing more than one million tons of bauxite residue annually.
“This project is a significant investment in our community, providing hundreds of new direct and indirect jobs, however, it’s also an investment in America,” said St. James Parish President Pete Dufresne, noting the importance of reinforcing domestic alumina-related supply chains.
To secure the project, Louisiana offered a competitive incentives package that includes workforce training through LED FastStart, a $6 million performance-based grant for utility and infrastructure improvements, and participation in the Quality Jobs and Industrial Tax Exemption programs.
