The Department of War has awarded $29.9 million to ElementUS Minerals, LLC (ElementUSA) to support the creation of a domestic supply of gallium and scandium. The funding will be used for the development of a demonstration facility in Gramercy, Louisiana, where ElementUSA will separate and purify these minerals from industrial waste. The company will also begin initial development work at its Critical Resource Accelerator in Cedar Park, Texas.
This investment is funded through the Additional Ukraine Supplemental Appropriations Act of 2022 and aligns with the Administration's objectives outlined in Executive Order 14241, which aims to increase American mineral production as announced on March 20, 2025.
Assistant Secretary of War for Industrial Base Policy Mike Cadenazzi stated, "Gallium and scandium are critical minerals essential to a wide range of defense manufacturing industries and equipment. Developing domestic production of both is a DOW priority."
ElementUSA specializes in recovering minerals from industrial waste streams to establish domestic supply chains for critical minerals required by national defense. With this award under Defense Production Act Title III funds, ElementUSA is set to become one of the first U.S.-based producers of gallium and scandium. These elements are necessary for systems such as missile defense platforms, sensors, fighter aircraft, and hypersonic weapons. The company plans to use its proprietary process to extract these minerals from more than 30 million tons of bauxite residue generated during alumina refining—a method that supports both resource recovery and environmental cleanup without additional mining.
Mr. Jeffrey Frankston, Acting Deputy Assistant Secretary of War for Industrial Base Resilience, said: "By enabling ElementUSA to recover gallium and scandium from processing waste, this award will support the DOW's work to expand the supply of critical minerals needed for numerous defense components and platforms. Such awards are essential for reconstituting domestic capabilities, diversifying supply chains, reducing dependence on foreign sources, and enhancing national security."
The award is part of a broader effort by the Defense Production Act Purchases Office within fiscal year 2025; it is one among 18 awards totaling $887 million with recipient cost shares amounting to $88 million.
The Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate oversees these initiatives through programs such as those detailed at https://www.businessdefense.gov/ibr/mceip/index.html.
The Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP)) collaborates with partners domestically and internationally to maintain a secure industrial base supporting military needs now and into the future. OASW(IBP) also uses mechanisms like the Defense Industrial Base Consortium Other Transaction Agreement (DIBC OTA) to encourage research or prototype projects aimed at strengthening supply chain resiliency—more information can be found at https://www.dibconsortium.org.
