DoD Invests $85.5M to Strengthen US Refractory-Grade Bauxite Supply, Reducing Reliance on Chinese Imports

The US Department of Defense issued a statement on August 7, announcing that it would invest $85.5 million to strengthen the supply of refractory-grade bauxite. This investment was provided through the Department of Defense's Industrial Base Analysis and Sustainment (IBAS) program and an agreement reached with Strategic Bauxite USA (SBX), with the aim of establishing a secure, vertically integrated US refractory-grade bauxite supply chain. Concurrently, the private sector would co-invest $64.5 million, bringing the total committed investment under the agreement to $150 million.

The funding would be primarily used for three purposes: acquiring and expanding the First Bauxite mine in Guyana; developing a new calcination facility for primary processing; and supporting the subsequent construction of a brown fused alumina facility in the US.

The statement noted that currently, most of the US's refractory-grade bauxite supply comes directly from China or Chinese-funded enterprises, and the plan aims to reduce import reliance. When the project is fully operational, it is expected to meet 100% of the US military's demand for brown fused alumina and 100% of its demand for refractory-grade bauxite.