The Department of Defense announced Friday a $135.6 million equity investment aimed at safeguarding U.S. access to critical minerals essential for military systems and national infrastructure. The bulk of the funding, $100 million in preferred equity, will go to Atlantic Alumina Company (Atalco), the nation’s sole remaining alumina refinery located in Gramercy, Louisiana.
Alumina, derived from bauxite ore, is the primary feedstock for aluminum production. The finished metal is used in aircraft, ground vehicles, weapons, electronics, and a host of civilian manufacturing and infrastructure projects. Atalco currently supplies roughly 55 % of the United States’ alumina demand and supports aluminum smelters in Kentucky, South Carolina, and major manufacturers across Texas, North Carolina, Alabama, Georgia, Illinois, and Mississippi.
Boosting Domestic Capacity
The $100 million investment brings the War Department’s total commitment to Atalco to $400 million. Private investors have already pledged an additional $350 million, with $50 million expected within the next 75 days, potentially raising total funding to $800 million. The money will fund ongoing operations and capital improvements designed to return the plant to its name‑plate capacity of 1.2 million metric tons of alumina per year.
Department officials estimate the refinery currently meets about 60 % of the military’s annual requirement for metallurgical aluminum, which totals roughly 200,000 metric tons. Planned production increases are projected to allow the facility to meet 142 % of projected demand by 2029, with 99.3 % of output destined for national‑security‑related industries.
Job Preservation and Economic Impact
The investment is expected to preserve approximately 875 jobs tied to refining, mining, shipping, and port operations, including about 530 direct refinery positions in Gramercy. Officials warned that without the infusion of capital, financial and operational pressures could force the refinery and its associated mining activities to shut down.
Alaska Mineral Project
In a separate transaction, the War Department executed a $35.6 million investment agreement with Trilogy Metals, a publicly traded exploration company. The government will acquire a 10 % direct ownership stake and additional penny warrants representing 7.5 % of the company, for a combined economic position of 17.5 %.
The funds will support exploration, engineering, and infrastructure development at the Upper Kobuk Mineral Projects in northwest Alaska. The district, managed by Ambler Metals—a 50‑50 joint venture between Trilogy and Australian miner South32—contains copper, cobalt, germanium, and other materials critical to defense systems, data centers, and electrical infrastructure.
The War Department highlighted the Arctic deposit as one of the world’s highest‑grade undeveloped copper deposits, with the nearby Bornite project also offering significant copper, cobalt, and germanium resources. Development hinges on the proposed Ambler Road, a 211‑mile industrial corridor linking the district to Alaska’s Dalton Highway.
President Donald Trump approved an appeal supporting the road in October 2025 and directed federal agencies to issue the necessary authorizations. The Bureau of Land Management subsequently reissued a 50‑year right‑of‑way grant, overturning the previous Biden administration’s rejection over wildlife, waterway, and Alaska Native subsistence concerns.
Economic Outlook
The Department projects that the Ambler district and road could generate more than 2,730 construction jobs and 500 long‑term mining positions, as well as over $1.1 billion in state revenue for Alaska. Downstream processing and manufacturing could be located in Texas, Arizona, Utah, Ohio, and Pennsylvania.
These transactions differ from traditional federal grants or procurement contracts because the government receives preferred ownership units, common shares, or warrants in exchange for its capital. Officials say this structure protects taxpayer money while directing funds toward industrial facilities and mineral projects deemed vital to national security, reducing reliance on overseas supply chains.
Original reporting: WBAP News/Talk (Dallas-Fort Worth) — read the source article.
