The Department of War's (DOW) Economic Defense Unit, in partnership with the Office of the Assistant Secretary of War for Industrial Base Policy announced today an $85.5 million equity investment agreement with Strategic Bauxite USA, LLC (SBX) through the Industrial Base Analysis and Sustainment (IBAS) program. This strategic partnership will establish a secure, vertically-integrated U.S. supply chain for refractory-grade bauxite, a critical material for national defense and key industrial base sectors.
"Our defense readiness relies on secure, regional access to critical minerals," said the Honorable Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy. "This partnership with Strategic Bauxite through the equity funding and analysis provided by the IBAS program ensures that critical materials in the western hemisphere stay in supply chains that protect the United States and its allies."
The Department's contribution of $85.5 million from IBAS is complemented by an additional $64.5 million co-investment from the private sector. These funds will be used to acquire and expand the First Bauxite (FBX) mine in Guyana, develop new calcination facilities for primary processing, and contribute to a follow-on project to construct a brown-fused alumina (BFA) facility in the United States.
This initiative addresses an over-dependence on imports for refractory-grade bauxite for the U.S. supply chain, with the vast majority sourced directly from China or Chinese-owned entities. Once fully operational, this project is expected to meet 100% of U.S. military demand for BFA and 100% of U.S. demand for refractory bauxite. IBAS equity and direct investments are strategically targeted at critical supply chain bottlenecks, particularly where private venture capital has historically been hesitant to invest due to long developmental timelines.
"The Department of War is no longer waiting for supply chain dependencies to be exploited," said George K. Kollitides II, Director of the Economic Defense Unit. "This agreement shows how EDU and the Department can partner with the commercial sector to rapidly turn opportunities into advantages for the warfighter."
Refractory-grade bauxite is necessary for manufacturing high-temperature-resistant materials used to make critical components for our warfighters such as heat shields, thermal barriers, and turbine engines in guided missiles, rockets, military aircraft, and space systems. Beyond defense, this high-purity bauxite is a vital raw material for steel and aluminum production, energy infrastructure, and industrial furnaces, making it a cornerstone of a modern, industrial economy.
This agreement also serves as an example of how the Department is coordinating across the interagency to support national security requirements. As part of the broader effort, the Department of State provided critical funding to support infrastructure associated with the project, enabling the U.S. government to act quickly and reinforce the long-term viability of the supply chain.
