The U.S. is taking a decisive step to strengthen its defense manufacturing base by funding a new effort to extract gallium and scandium from industrial waste. This investment aims to build a reliable domestic supply of two critical minerals essential to advanced military technologies.
The $29.9 million award, issued under the Defense Production Act, equips ElementUSA to develop new facilities in Louisiana and Texas that will process mineral-rich bauxite residue into valuable resources. The initiative supports long-term U.S. security goals by reducing dependence on foreign mineral suppliers.
The Department of War has announced a $29.9 million Defense Production Act Title III award to ElementUSA, a firm specializing in the recovery of minerals from industrial waste. The award will fund the creation of a demonstration facility in Gramercy, Louisiana, and early development work at a technology site in Cedar Park, Texas. The investment aligns with national efforts to rebuild domestic critical mineral capabilities.
Growing Demand for Critical Minerals
Gallium and scandium play essential roles in the production of advanced sensors, missile defense components, fighter aircraft, and hypersonic weapon systems. Because these minerals enhance performance in high-stress environments, their availability is increasingly important for U.S. defense readiness. Yet until now, the United States has relied heavily on foreign suppliers for both materials.
As global competition intensifies, officials warn that supply chain vulnerabilities could slow military production or limit access to essential technologies. Therefore, expanding U.S.-based sources of processed minerals has become a strategic priority across multiple federal agencies.
ElementUSA’s Waste-to-Minerals Approach
ElementUSA brings expertise in extracting valuable minerals from industrial byproducts. The new facilities will process more than 30 million tons of bauxite residue, a waste material left behind after refining alumina. Using a proprietary method, the company can separate, purify, and commercialize gallium and scandium without additional mining—a key environmental advantage.
This approach contributes to both sustainability and national security. By recovering minerals from existing waste, the company reduces environmental burdens while supplying essential materials for defense applications. Officials say this dual benefit made the project especially compelling for federal investment.
Production Impact Overview
| Impact Area | Projected Benefit |
|---|---|
| Domestic gallium supply | First large-scale U.S. producer supporting defense technologies |
| Domestic scandium supply | Expanded availability for aircraft alloys and hypersonic systems |
| Environmental gains | Reclamation of mineral-rich waste with no new mining required |
| Defense manufacturing resilience | Reduced reliance on foreign mineral suppliers |
The development of this capacity aligns with President Biden’s Executive Order 14241, which emphasizes immediate measures to expand American mineral production. The initiative also draws on the Additional Ukraine Supplemental Appropriations Act of 2022, reinforcing recent cross-sector efforts to enhance U.S. industrial readiness.
National Security and Industrial Base Resilience
Federal officials emphasized that strengthening domestic mineral production is part of a broader strategy to rebuild industrial resilience. Assistant Secretary of War for Industrial Base Policy Mike Cadenazzi highlighted the importance of gallium and scandium to defense platforms, noting that both minerals support technologies central to modern military operations.
“Gallium and scandium are critical minerals essential to a wide range of defense manufacturing industries and equipment,” said Assistant Secretary of War for Industrial Base Policy Mike Cadenazzi. “Developing domestic production of both is a DOW priority.”
Moreover, the Manufacturing Capability Expansion and Investment Prioritization directorate, which oversees the Defense Production Act Purchases Office, is responsible for coordinating investments that support long-term supply chain redevelopment. The ElementUSA award is one of 18 issued in fiscal year 2025, totaling $887 million.
The motivations behind the investment include:
- Strengthening domestic sources of materials essential for weapons, aircraft, and sensor systems.
- Diversifying supply chains to reduce dependence on foreign producers.
In addition, the Defense Industrial Base Consortium Other Transaction Agreement provides a separate mechanism for exploring innovative research and prototype solutions. This effort complements DPA-funded initiatives by encouraging collaboration between government, academia, and industry.
A Stronger Domestic Supply Chain
As the U.S. continues to modernize its defense capabilities, access to high-quality critical minerals will remain essential. ElementUSA’s new demonstration facility aims to establish a reliable domestic source while reducing environmental impacts. By turning industrial waste into advanced materials, the project demonstrates how innovation can solve long-standing supply chain challenges.
Federal leaders believe this investment will help ensure that future defense systems can be manufactured with fewer disruptions and greater independence from overseas suppliers. Furthermore, it reinforces a broader national strategy that prioritizes economic security, industrial strength, and technological leadership.
The Department of War’s investment reflects a growing commitment to rebuilding U.S. mineral production and improving long-term readiness. As the demonstration facility becomes operational, it is expected to play a pivotal role in supporting next-generation defense technologies and strengthening the domestic industrial base.
Sources: US Department of War.
Prepared by Ivan Alexander Golden, Founder of THX News™, an independent news organization delivering timely insights from global official sources. Combines AI-analyzed research with human-edited accuracy and context.
