Element USA to spend $850 million on Louisiana rare metals refinery

ElementUSA announced December 15 it would spend $850 million to build a new mineral refinery in St. John Parish, Louisiana. The Louisiana Economic Development agency said the production site would create 200 new jobs with an average salary of $90,000.

Construction of the demonstration factory is scheduled for the middle of 2027, with initial production at the factory starting in the second half of 2028. The company anticipates the fully-operational site will source the bauxite residue from nearby alumina refineries and process one million tons of it every year.

The refinery will extract gallium, scandium, iron and other materials from bauxite residue using a proprietary process. ElementUSA will build a demonstration facility before it gets started building the actual factory in exchange for a $29.9 million grant from the U.S. Department of War, as well as state funds. ElementUSA will receive a $6 million grand from LED for utility and infrastructure improvements as well as workforce development support.

What people are saying

“We are humbled and energized by the Department of War’s trust in ElementUSA at this pivotal moment for America’s critical minerals landscape,” ElementUSA CEO Ellis Sullivan said. “This project in Gramercy 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.”

“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,” Gov. 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.”

“This project is a significant investment in our community, providing hundreds of new direct and indirect jobs, however, it’s also an investment in America,” St. James Parish President Pete Dufresne said. “Enhancing the United States’ only alumina processing facility, providing roughly 40% of the country’s alumina, is a critical investment in our nation’s future.”

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