Louisiana has secured an $850 million investment from ElementUSA to develop a rare earth and critical minerals refining facility in St. John Parish, a project aimed at strengthening the U.S. supply chain for materials critical to advanced manufacturing, defense, and energy technologies.
The project is expected to create 200 direct jobs with an average annual salary of $90,000, approximately 28 percent above the current average wage in St. John Parish. Louisiana Economic Development (LED) estimates the investment will also generate 554 indirect jobs, bringing total potential employment impact to 754 positions across the Southeast Region.
ElementUSA plans to use proprietary extraction technologies to recover gallium, scandium, iron, and other critical minerals from more than 30 million tons of bauxite residue, a byproduct of alumina refining. The company will initially construct a demonstration facility to validate its process and inform the design of a future commercial-scale operation. Construction of the demonstration facility is expected to begin in mid-2027, with initial production targeted for the third quarter of 2028.
Governor Jeff Landry said the project reinforces Louisiana’s role in rebuilding domestic industrial capacity. “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,” Landry said, adding that the project positions the state’s workforce in a rapidly expanding sector.
The initiative is supported by a $29.9 million grant from the U.S. Department of Defense, reflecting federal interest in securing domestic access to strategic minerals. ElementUSA CEO Ellis Sullivan said the Gramercy project demonstrates how innovative processing technologies can reduce reliance on foreign suppliers while supporting U.S. industry and national security.
LED Secretary Susan B. Bourgeois described the investment as validation of the state’s economic development strategy. “This project brings high-quality jobs, new industry capabilities, and long-term advantages for Louisiana and the U.S.,” she said.
To support the project, Louisiana offered a competitive incentives package that includes workforce development assistance through LED FastStart and a $6 million performance-based grant for utility and infrastructure improvements. ElementUSA is also expected to participate in the state’s Quality Jobs and Industrial Tax Exemption programs.
Local leaders emphasized the broader national significance of the investment. St. James Parish President Pete Dufresne noted that enhancing the region’s existing alumina processing infrastructure is “a critical investment in our nation’s future.”
Since first announcing plans in 2021, ElementUSA has advanced technology development and site evaluation at Gramercy, positioning the project for this next phase of investment. With construction planned and federal support secured, the project strengthens Louisiana’s position in advanced manufacturing while contributing to U.S. efforts to secure resilient, domestic critical minerals supply chains.
