The U.S. Department of War (DoW) has announced a $100 million follow-on preferred equity investment in Atlantic Alumina Company LLC (Atalco), bringing its total commitment to $400 million to secure the nation's sole remaining domestic alumina refinery. This strategic move, made in partnership with the Economic Defense Unit, aims to bolster the U.S. industrial base and mitigate critical supply chain risks.
This latest funding, part of the Industrial Base Analysis and Sustainment (IBAS) program, has also catalyzed $350 million in parallel private investments, with an additional $50 million anticipated soon, totaling $400 million from third parties. The combined $800 million in strategic investments will ensure the continued operation of the Gramercy facility, a vital component of the U.S. defense industrial base.
The Honorable Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy, emphasized the importance of the investment, saying, "Our national defense strategy relies on a robust and self-sufficient industrial base. Investing in Atalco ensures the United States maintains its domestic alumina refining capability, mitigating a critical supply chain risk and protecting our military readiness from foreign interference." The funds will provide liquidity, counter foreign competition, and support capital expenditures to restore the facility's 1.2 million metric tons per year capacity.
The DoW requires 200,000 metric tons of metallurgical aluminum annually, and this investment is projected to scale Atalco's production to fulfill 142 percent of the Department's demand by 2029, up from the current 60 percent. George K. Kollitides II, Director of the Economic Defense Unit, noted that the transaction is "structurally anchored to protect U.S. taxpayer capital while providing the targeted liquidity necessary to scale production." This initiative also preserves approximately 875 direct jobs, including 530 refinery employees in Gramercy, and insulates the U.S. from foreign supply-chain dependence, establishing a resilient domestic aluminum supply chain for the future.