The United States Department of War has announced an $85.5 million equity investment agreement with Strategic Bauxite USA, LLC (SBX) aimed at securing a reliable supply of refractory-grade bauxite, including through the expansion of the First Bauxite mine in Guyana.
The agreement was announced by the Department of War’s Economic Defense Unit, in partnership with the Office of the Assistant Secretary of War for Industrial Base Policy, through the Industrial Base Analysis and Sustainment (IBAS) programme.
The US government said the strategic partnership will establish a secure, vertically integrated supply chain for refractory-grade bauxite, a material considered critical to national defence and several major industrial sectors.
Assistant Secretary of War for Industrial Base Policy Michael Cadenazzi said the investment is intended to strengthen access to critical minerals within the Western Hemisphere.
“Our defense readiness relies on secure, regional access to critical minerals,” Cadenazzi said.
He added that the partnership with Strategic Bauxite, supported through IBAS equity funding and analysis, would help ensure critical materials remain within supply chains that protect the United States and its allies.
The US government’s $85.5 million contribution will be supplemented by an additional $64.5 million private-sector co-investment, bringing the total committed investment to $150 million.
According to the Department of War, the funding will be used to acquire and expand the First Bauxite (FBX) mine in Guyana, develop new calcination facilities for primary processing and support a subsequent project to construct a brown-fused alumina (BFA) facility in the United States.
The initiative is aimed at reducing US dependence on imported refractory-grade bauxite, with the department noting that the majority of the material currently entering the US supply chain is sourced directly from China or Chinese-owned entities.
Once fully operational, the project is expected to meet 100 per cent of US military demand for brown-fused alumina and 100 per cent of US demand for refractory bauxite, according to the department.
George K. Kollitides II, Director of the Economic Defense Unit, said the agreement demonstrates the US government’s willingness to work with the private sector to address vulnerabilities in critical supply chains.
“The Department of War is no longer waiting for supply chain dependencies to be exploited,” Kollitides said.
Refractory-grade bauxite is used to manufacture high-temperature-resistant materials needed for critical defence components, including heat shields, thermal barriers and turbine engines used in guided missiles, rockets, military aircraft and space systems.
The material also has applications beyond the defence sector, including steel and aluminium production, energy infrastructure and industrial furnaces.
The Department of War said the agreement forms part of a broader interagency effort to strengthen critical mineral supply chains and address national security requirements.
The US Department of State also provided funding for infrastructure associated with the project, which officials said will help accelerate development and strengthen the long-term viability of the supply chain.
The investment places Guyana’s bauxite resources at the centre of a major US effort to develop a more secure Western Hemisphere supply chain for a material considered strategically important to American defence and industrial production.
