Department of War Announces a $100 Million Follow-on Equity Investment in Atalco to Secure the Sole Remaining Domestic Alumina Refinery

Aug. 28, 2026 |

The Department of War's (DoW) Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP)), in partnership with the Economic Defense Unit (EDU), announced today a $100 million follow-on preferred equity investment in Atlantic Alumina Company LLC (Atalco) through the Industrial Base Analysis and Sustainment (IBAS) program.

"Our national defense strategy relies on a robust and self-sufficient industrial base," said the Honorable Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy. "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."

This latest action brings the Department's total investment in Atalco to $400 million. Critically, DoW's funding has catalyzed $350 million in parallel investments from Atalco's current backers , with an additional $50 million expected within the next 75 days, bringing total third-party investments to $400 million. These collective strategic investments, totaling $800 million, will secure operations at the last remaining domestic alumina refinery, preserving a vital node in the U.S. defense industrial base.

Both the DoW's and private capital's follow-on investments will purchase Class A Preferred Units, providing the liquidity necessary to sustain operations, overcome unsustainable foreign competition, and fund capital expenditures to bring the facility back to its nameplate capacity of 1.2 million metric tons of alumina per year.

The DoW requires 200,000 metric tons of metallurgical aluminum annually. While Atalco currently satisfies 60 percent of this demand, this investment will scale production to fulfill 142 percent of the Department's projected demand by 2029. With 99.3 percent of the refinery's output dedicated to national security subsectors, the project significantly insulates the U.S. from supply-chain dependence on foreign adversaries.

"This transaction is structurally anchored to protect U.S. taxpayer capital while providing the targeted liquidity necessary to scale production," said George K. Kollitides II, Director of the Economic Defense Unit. "By investing in this strategic asset, DoW mobilized $400 million of private capital and attracted a world-class independent board of directors to accelerate the development of our domestic capabilities and bridge a vital gap in the aluminum supply chain."

Without this near-term investment, financial and operational stresses would likely force the closure of both the refinery and its affiliated mining operations. This agreement preserves approximately 875 direct jobs across refining, mining, logistics, and port operations, including 530 refinery employees in Gramercy.

The Gramercy facility converts imported bauxite into domestically refined alumina, accounting for roughly 55 percent of domestic alumina demand. It serves as a critical feedstock for aluminum production across the U.S. economy, supplying Century Aluminum smelters in Kentucky, the Mt. Holly smelter in South Carolina, and major manufacturing facilities across Texas, North Carolina, Alabama, Georgia, Illinois, and Mississippi.

This strategic partnership demonstrates the Department's ability to synchronize public and private sector efforts to meet urgent national security demands. Bolstered by the integration of third-party capital, this unified approach has empowered the United States to act decisively in establishing a resilient and enduring domestic aluminum supply chain for the future.