Trump Administration Takes Stake in Major Critical Mineral Firm

The Trump administration is buying a stake in yet another company.

This time, the U.S. Department of Defense is entering a partnership with Atlantic Alumina (ATALCO) to boost the nation’s supply of alumina, a raw material needed to make aluminum, and to jump-start domestic production of the critical mineral gallium.

As part of the deal, the department invested $150 million in preferred equity in ATALCO. Additional government funding is also expected within 30 days of the deal’s closing. Meanwhile, Pinnacle, the majority shareholder in ATALCO via its subsidiary Concord Resources Holdings, has invested more than $300 million in private capital as part of the partnership.

The deal is part of the U.S.’s broader tech and defense race with China, as both lumina and gallium are key materials used to make semiconductors, next-gen energy tech, and aerospace and defense systems. As it stands, China controls roughly 60% of global alumina and more than 90% of the world’s primary gallium supply.

The partnership is meant to counter that dominance. ATALCO has been producing alumina in Louisiana since 1959, and the new funding is expected to both expand its alumina output and establish the “first and only large-scale primary gallium production circuit.”

“Aligning this essential public sector support with private sector investment will secure onshore supply of alumina and gallium, which are contested commodity market segments currently dominated by China,” ATALCO said in a press release.

ATALCO said it anticipates producing more than one million metric tons of alumina per year and up to 50 metric tons of gallium annually.

The deal also underscores the Trump administration’s growing preference for taking direct equity positions in companies it views as strategically important, rather than relying solely on traditional subsidies or government loans.

Last year, the Trump administration bought a 10% stake in the chipmaker Intel after President Donald Trump publicly threatened the company’s CEO over an alleged conflict of interest and his past ties to China.

The government has also backed several mining companies tied to critical materials, including MP Materials and Trilogy Metals.

In October, the Department of Energy announced plans to acquire a 5% stake in Lithium Americas and its joint venture with General Motors, which is developing a lithium mine in Nevada intended to supply batteries for electric vehicles and other electronics.

In another high-profile move, the administration signed off on Nippon Steel’s takeover of U.S. Steel in exchange for a so-called “golden share” that gives the federal government a say in some company decisions.

Silicon Valley leaders were vocal during the 2024 U.S. election that Trump would be the most business-friendly candidate for President. No one really anticipated that such a sweeping direct merger of business and government would be in the cards.