“ElementUSA’s investment is a game-changer for the region, strengthening Louisiana’s role in advanced manufacturing while securing a domestic supply of critical minerals used in defense operations,” President and CEO of Greater New Orleans, Inc. Michael Hecht said. “At a time when global supply chains are under pressure, this project helps ensure the materials the nation depends on are refined in the United States. It also raises the state’s profile as a place where complex, strategic projects can move quickly from concept to reality.”
“ElementUSA’s investment marks a major step in strengthening America’s critical minerals supply chain, and Louisiana is proud to play a leading role in that effort,” Governor Jeff Landry said. “This project advances essential mineral production in the United States and positions Louisiana’s workers and communities at the forefront of a rapidly growing industry. As President Trump has consistently said, strengthening America’s industrial base is a top priority, and Louisiana is delivering the projects that turn that vision into reality.”
ElementUSA will use its proprietary processes to extract gallium, scandium, iron and other critical minerals from more than 30 million tons of bauxite residue, the byproduct of the alumina refining process. Supported by a $29.9 million U.S. Department of War grant, the company will first construct a demonstration facility to validate its extraction process and guide the design of a future commercial-scale facility.
“We are humbled and energized by the Department of War’s trust in ElementUSA at this pivotal moment for America’s critical minerals landscape,” CEO of ElementUSA Ellis Sullivan said, “This project will demonstrate how the United States can produce gallium and scandium at scale using innovative extraction technologies, reducing foreign dependence and ensuring our warfighters and industries have reliable access to these strategic materials.”
“Louisiana has supported this effort for more than four years, and that partnership has been instrumental to our progress. Now, with federal support in place, we can advance our prototype facility and move toward our full-scale vision: a world-class plant in Louisiana capable of processing over one million tons of bauxite residue annually and producing a suite of essential minerals including gallium, scandium, and iron, that will strengthen America’s industrial base and national security.”
Since announcing its initial plans in 2021, the company has advanced its technology and development work at the Gramercy site to support domestic critical mineral production. Over the past several years, ElementUSA has refined its proprietary extraction process and evaluated the site’s bauxite residue resources, laying the groundwork for this next phase of investment.
“ElementUSA’s investment decision is another clear sign that Louisiana’s strategy is working,” LED Secretary Susan B. Bourgeois said. “By strengthening our competitiveness, aligning agencies through a whole-of-government model, and listening directly to companies, we’ve built the conditions that turn interest into investment. This project brings high-quality jobs, new industry capabilities and long-term advantages for Louisiana and the U.S.”
Construction of the demonstration facility is expected to begin in mid-2027, with initial production targeted for the third quarter of 2028.
“This announcement represents a significant opportunity for St. John the Baptist Parish and our residents,” said St. John the Baptist Parish President Jaclyn Hotard. “The considerable investment from ElementUSA and the high-wage jobs created will fuel real economic momentum for our parish, while strengthening industries that are vital to the nation’s future. We are committed to working closely with ElementUSA and our state and regional partners to ensure this project delivers lasting benefits for the local community and workforce.”
To win the project in Gramercy, the state of Louisiana offered ElementUSA a competitive incentives package that includes the comprehensive workforce development solutions of LED FastStart and a $6 million performance-based grant for utility and infrastructure improvements. The company is also expected to participate in Louisiana’s Quality Jobs and Industrial Tax Exemption programs.
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