The Department of Defense announced a $174 million investment to secure domestic gallium production, targeting a critical mineral for which China holds dominant global supply and has already imposed export restrictions, on Aug. 31.
The investment addresses a documented vulnerability in U.S. military readiness, as gallium is essential for manufacturing radar systems, satellite components and the advanced semiconductor electronics that underpin modern defense systems.
China’s export controls on gallium have disrupted global supply chains for semiconductors and defense electronics, the Pentagon said. The investment is part of a broader effort to reduce the defense industrial base’s dependence on adversarial nations for materials essential to weapons production.
Gallium is used in gallium arsenide and gallium nitride semiconductors, which are critical for high-frequency communications, electronic warfare systems and advanced radar. Unlike silicon-based chips used in consumer electronics, these compound semiconductors are irreplaceable in many defense applications.
The United States currently has minimal domestic gallium production capacity. China produces an estimated 80% of the world’s gallium supply and has used export controls as leverage in trade and geopolitical disputes.
The $174 million investment will support domestic mining, refining and processing capabilities to establish a reliable supply chain within the United States and allied nations, according to the department.
The action reflects the administration’s national security-framed approach to supply chain resilience, which has also included investments in rare earth minerals, microelectronics manufacturing and shipbuilding capacity.
Congressional leaders on the Armed Services Committees have supported critical mineral investments but have pressed the Pentagon to accelerate timelines, arguing that reliance on Chinese-controlled supply chains represents an unacceptable strategic risk.