Department of War Announces an $85.5 Million Agreement With Strategic Bauxite USA to Secure the Critical Refractory Grade Bauxite Supply Chain
The U.S. Department of War announced an $85.5 million investment with Strategic Bauxite USA to secure domestic supply of refractory-grade bauxite, a critical mineral for defense and industry.
The Department of War’s Economic Defense Unit and the Office of the Assistant Secretary of War for Industrial Base Policy finalized an $85.5 million equity agreement with Strategic Bauxite USA, LLC, through the Industrial Base Analysis and Sustainment program. The partnership aims to establish a secure, vertically integrated U.S. supply chain for refractory-grade bauxite, a material essential for national defense and key industrial sectors. Assistant Secretary Michael Cadenazzi stated that the agreement ensures access to critical minerals within the Western Hemisphere, reducing reliance on imports.
Funding includes $85.5 million from the Department of War and an additional $64.5 million from private investors. The investment will expand the First Bauxite mine in Guyana, develop new calcination facilities for primary processing, and support construction of a brown-fused alumina facility in the United States. The project addresses the U.S. supply chain’s heavy dependence on imports, primarily from China or Chinese-owned entities, for refractory-grade bauxite.
The initiative targets supply chain bottlenecks where private capital has historically been hesitant due to long development timelines. George K. Kollitides II, Director of the Economic Defense Unit, emphasized the Department’s proactive approach to preventing supply chain vulnerabilities. Once operational, the project is expected to meet 100% of U.S. military demand for brown-fused alumina and 100% of domestic demand for refractory bauxite.
Refractory-grade bauxite is used to produce high-temperature-resistant materials for military components such as heat shields, thermal barriers, and turbine engines in missiles, aircraft, and space systems. The Department of State also provided funding to support infrastructure associated with the project, reinforcing the long-term viability of the supply chain as part of broader interagency coordination.