The administration of U.S. President Donald Trump is making a significant move to secure the nation's supply of essential minerals, investing US$150 million to help create the United States' only major producer of gallium. This critical mineral is vital for satellite systems and military radar technology.
A Strategic Partnership for National Security
On Monday, January 12, 2026, the U.S. Department of Defense and an affiliate of Pinnacle Asset Management are set to announce a strategic partnership with Atlantic Alumina Co. (ATALCO). The Louisiana-based company has processed bauxite into alumina near New Orleans since the late 1950s. Alumina is the key material used in aluminum production.
This deal represents the latest in a series of direct investments by the Trump administration into companies deemed crucial for U.S. national security. This strategy has previously included taking a stake in chipmaker Intel Corp. and negotiating a special share in U.S. Steel Corp. during its acquisition by Japan's Nippon Steel.
Financing a Domestic Supply Chain
Under the agreement, the Pentagon is providing US$150 million in preferred equity to ATALCO. This capital will be combined with an additional US$300 million from Pinnacle. The funds are earmarked to increase alumina output and, critically, to establish the country's first and only large-scale gallium production circuit. The U.S. government is expected to provide further funding within 30 days of the deal's closure.
ATALCO, owned by Pinnacle's Concord Resources Holdings, stated the investment will revitalize its Gramercy, Louisiana facility. The company anticipates eventually producing over one million metric tons of alumina annually and up to 50 metric tons of gallium per year, which it claims could meet total U.S. gallium demand.
Reducing Reliance on Foreign Sources
This initiative aligns with broader efforts led by Commerce Secretary Howard Lutnick to boost supplies of rare earths and critical minerals. The issue sits at the centre of ongoing trade tensions between the U.S. and China, which currently dominates the global markets for both alumina and gallium.
"This strategic partnership is an essential step in reducing reliance on foreign nations for critical minerals," ATALCO said in a statement. Minerals like alumina and gallium are indispensable for manufacturing aerospace and defence systems, semiconductors, and energy-related technologies.
Jason Kellman, Chief Investment Officer at Pinnacle, emphasized that the firm's philosophy has focused on bolstering the U.S. supply chain for critical minerals for the past decade. Scott Kellman, Pinnacle's Managing Partner, added that the investment unlocks growth potential in mineral processing and power generation, contributing to the long-term security of America's materials supply chain.
The Defense Department's investment was made through its Industrial Base Analysis and Sustainment Program, which is designed to strengthen the domestic industrial base. New York-based Pinnacle manages more than US$6 billion in assets.
