Atlantic Alumina Company (ATALCO), the only operating alumina refinery in the United States, said it has entered a $450 million strategic partnership with the U.S. Department of War and Concord Resources Holdings Limited aimed at sustaining and expanding U.S. alumina production while establishing what the company described as America’s first large-scale primary gallium production circuit.
The effort centers on ATALCO’s Gramercy, Louisiana site, where the company plans to restore its existing alumina operations to nameplate production and design and construct new gallium processing capabilities. ATALCO said the facility is expected to produce more than one million metric tons of alumina annually and up to 50 metric tons of gallium per year, supported by a roughly 500-person workforce that the company said is majority represented by the United Steelworkers.
ATALCO positioned the partnership as a critical-minerals supply chain move tied to national security and industrial resilience. Alumina is a key raw material for aluminum production used across aerospace, defense, and automotive supply chains, while ATALCO’s chemical-grade alumina supplies end markets that include catalysts used in oil and gas refineries, refractories, fire suppressants, ceramics for semiconductor applications, and municipal water treatment, the company said. Gallium is used in advanced semiconductor technologies and other systems linked to defense and energy applications.
The company said the agreement is intended to strengthen the domestic availability of materials it characterized as strategically important and globally contested, noting that the alumina and gallium markets are heavily influenced by Chinese supply. ATALCO said the Louisiana investment is expected to preserve more than 500 jobs while enabling the site to serve U.S. aluminum smelters and other industrial customers, and to become capable of meeting the full “demand signal” for gallium in the U.S., including government requirements and domestic innovation needs.
Under the financing structure outlined by the company, the Department of War’s Industrial Base Analysis and Sustainment program invested $150 million in preferred equity. ATALCO said additional U.S. government funding is expected to close within 30 days of the equity closing. Concord, working with its majority shareholder—a fund managed by Pinnacle Asset Management—has invested more than $300 million in private capital, according to the announcement.
Aprio Advisory Group provided financial and transaction advisory support to Pinnacle and Concord. Goldman Sachs & Co. served as financial advisor to Concord. Linklaters acted as legal advisor to ATALCO and Concord, while Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisor to Pinnacle.
ATALCO said its operations date back to 1959 and that its broader supply chain includes Discovery Bauxite Operations Limited, which it described as part of Atlantic Alumina and connected to a Jamaican mining joint venture capable of exporting bauxite to the United States.
KEY QUOTES:
“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. This deal shows how quickly and decisively America can act to ensure long-term national security and economic resilience.”
ATALCO
“For the past decade, our investment philosophy has centered on bolstering the U.S. supply chain for critical minerals and other commodities. This strategic partnership plays an important role in strengthening our country’s critical minerals supply.”
Jason Kellman, Chief Investment Officer, Pinnacle Asset Management, L.P.
“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.”
Scott Kellman, Managing Partner, Pinnacle Asset Management, L.P.
