Atlantic Alumina Company LLC, the only operating alumina refinery in the United States, announced a partnership with the United States Department of War and Concord Resources Holdings Limited, in conjunction with Concord’s majority shareholder, a fund managed by Pinnacle Asset Management, L.P., a leading commodities investment firm, to sustain and increase domestic alumina production and establish the country’s first and only large scale primary gallium production circuit in Gramercy, Louisiana.
Since 1959, alumina produced by ATALCO has been used as the essential raw material for aluminum metal required for American aerospace, defense, and automotive supply chains, while the Company’s chemical grade alumina has supplied important industries aligned with the national interest, including catalysts for oil and gas refineries, refractories, fire suppressants, ceramic casing for semiconductors, and municipal water treatment. Both alumina and gallium are essential minerals for production of aerospace and defense systems, catalysts, semiconductors, and next-generation energy technology.
With support of leadership from DOW, the Governor of Louisiana, and members of Congress from Louisiana, this partnership underscores ATALCO’s unique ability to secure the future of critical mineral production in the United States. The Company expects to produce over one million metric tons of alumina per year and up to 50 metric tons of gallium per year with its 500-strong, uniquely skilled, majority-United Steelworkers workforce in Gramercy, Louisiana.
ATALCO said: “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. This deal shows how quickly and decisively America can act to ensure long-term national security and economic resilience.”
Meeting America’s Critical Mineral Needs
ATALCO will provide a secure supply of alumina to its customers in the United States, including aluminum smelters and critical mineral consumers in diverse industries, becoming capable of meeting the total gallium demand signal of the U.S. including the DOW and domestic innovators. The revitalization of the Gramercy site will secure more than 500 high value American jobs in Louisiana as ATALCO brings its existing facility back to nameplate production while designing and constructing a new gallium production circuit. This strategic partnership is an essential step in reducing reliance on foreign nations for critical minerals.
Strategic Investment Delivers for Americans through Public and Private Collaboration
The DOW’s Industrial Base Analysis and Sustainment program has invested $150 million of preferred equity in ATALCO. Additional funding from the U.S. Government is expected to close within 30 days of the equity closing. Pinnacle’s fund, as the majority shareholder in ATALCO via Concord, has invested more than $300 million in private capital.
"For the past decade, our investment philosophy has centered on bolstering the U.S. supply chain for critical minerals and other commodities,” said Jason Kellman, Chief Investment Officer, Pinnacle Asset Management, L.P. “This strategic partnership plays an important role in strengthening our country’s critical minerals supply.”
“In addition to the core expansion of the ATALCO facility, this investment unlocks significant growth potential, including increasing the site’s mineral processing and power generation capabilities, all of which contributes to the long-term security of America’s materials supply chain.” said Scott Kellman, Managing Partner, Pinnacle Asset Management, L.P.
Advisors
- Aprio Advisory Group, LLC provided financial and transaction advisory support to Pinnacle and Concord.
- Goldman Sachs & Co. LLC was financial advisor to Concord.
- Linklaters served as legal advisor to ATALCO and Concord.
- Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Pinnacle.
