War Department Invests $29.9 Million to Boost U.S. Supply of Gallium and Scandium
Nov. 20, 2025
The Department of War has awarded $29.9 million to ElementUS Minerals, LLC (ElementUSA) under the Defense Production Act (DPA) Title III. With this funding, the company will build a demonstration facility in Gramercy, Louisiana to separate and purify gallium and scandium from industrial waste. It will also begin early development work at its Critical Resource Accelerator in Cedar Park, Texas.
Supporting America’s Mineral Production Goals
This investment comes from the Additional Ukraine Supplemental Appropriations Act of 2022. It also supports Executive Order 14241, which directs federal agencies to increase domestic mineral production.
Moreover, Assistant Secretary of War for Industrial Base Policy Mike Cadenazzi stressed the importance of both minerals. He stated that expanding domestic production remains a key departmental priority.
Building a Reliable U.S. Source of Critical Minerals
ElementUSA specializes in recovering minerals from industrial waste. Through this award, the company will become one of the first U.S. producers of gallium and scandium. These materials are essential for missile defense systems, sensors, fighter aircraft, and hypersonic weapons.
Additionally, the company will use a proprietary process to extract minerals from more than 30 million tons of bauxite residue. This approach strengthens the U.S. mineral supply chain while reducing industrial waste and avoiding new mining.
Increasing National Security and Supply Chain Stability
Acting Deputy Assistant Secretary of War for Industrial Base Resilience Jeffrey Frankston noted several benefits of the project. He said the award will help expand the supply of critical minerals used in many defense systems. Furthermore, he emphasized that such investments rebuild domestic capabilities, diversify supply chains, reduce foreign dependence, and improve national security.
This award is one of 18 projects funded by the DPA Purchases Office in fiscal year 2025. Together, these investments total $887 million, with recipients contributing $88 million. The Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate manages the program.
About the Industrial Base Policy Office
The Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP)) works with U.S. and international partners to support a strong defense industrial base. In addition, the office uses the Defense Industrial Base Consortium Other Transaction Agreement (DIBC OTA) to seek research and prototype solutions that improve supply chain resilience. This effort ensures warfighters receive the materials and technologies they need.
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