China controls roughly 99% of the world’s primary low-purity gallium production and has put limits on its export since 2023. The metal, crucial for high-end semiconductors, is mainly a byproduct of aluminum (bauxite) and zinc refining. While raw bauxite isn’t hard to come by outside of China, there are few places outside of that country…
China controls roughly 99% of the world’s primary low-purity gallium production and has put limits on its export since 2023. The metal, crucial for high-end semiconductors, is mainly a byproduct of aluminum (bauxite) and zinc refining. While raw bauxite isn’t hard to come by outside of China, there are few places outside of that country that have invested in the expensive process to extract gallium.
This month, prices for gallium are roughly $2,269 per kilogram — a 141% increase since the start of 2025.This has been compounded by conflict in the Middle East, which disrupted aluminum production (and thus gallium recovery) in places such as Qatar. That has led companies and governments to seek other sources of the metal.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Two mining stocks that could benefit from that trend are Alcoa(NYSE: AA) and Teck Resources(NYSE: TECK). Here are reasons to buy each stock.
Image source: Getty Images.
The need to source aluminum and gallium outside China means that companies are willing to pay a premium for Alcoa’s products. Unlike many of its competitors, Alcoa has a vertically integrated supply chain in so-called “safe” locations. It has access to bauxite reserves at seven global mines in Australia, Brazil, Guinea, and Saudi Arabia. The company has seven refineries, six of which are located near key markets on the Atlantic and Pacific coasts.
The Pittsburgh company received $200 million from the Australian government in November, alongside U.S. and Japanese government equity support, for a gallium recovery plant at Alcoa’s Wagerup alumina refinery in Western Australia. The project, being worked on with the Sojitz Corporation of Japan, aims to achieve annual gallium production of 100 million tons.
In the first quarter, Alcoa reported revenue of $3.19 billion, down 7% sequentially. But earnings per share (EPS) doubled over the fourth quarter of 2025, to $1.60. The improvement in profitability is mainly due to the average realized price of aluminum increasing by 12.2% to $4.2 billion per U.S. metric tonne, as the London Metal Exchange price and regional premiums spiked amid Middle East shipping disruptions.
The company is aggressively using its $1.4 billion in cash to improve its financial health.It recently issued a notice to redeem $219 million of high-interest senior notes due in 2028, reducing its debt burden.
Alcoa shares trade at slightly more than 9 times forward earnings, a competitive valuation compared to its peers.
The successful restart of Alcoa’s San Ciprián smelter in Spain is expected to add significant volume to the aluminum segment.Management said it expects the move to contribute an additional $55 million in earnings in the second quarter alone, driven by increased shipments and lower per-unit costs.
Canadian mining company Teck Holdings isn’t a gallium producer, but it’s positioning itself to own the gallium processing infrastructure that Western governments are currently subsidizing to bypass Chinese supply chains. This toll-booth model for critical minerals reduces Teck’s direct mining risk while keeping it at the center of the North American semiconductor supply chain.
The company just sold its Apex germanium, gallium, and copper mine in Utah to Blue Moon Metals(NASDAQ: BMM) while retaining an 8% stake in Blue Moon. Instead, Teck will receive a 0.5% net smelter returns royalty on the property and a capped royalty of $1 million. Blue Moon will process its zinc concentrates, including gallium, at Teck’s Trail operations in British Columbia.
In 2025, Teck reported revenue of $10.8 billion, up 18.6%, and EPS of $2.84, compared to an EPS loss of $0.90 in 2024. It is in the process of merging with Anglo American, with the new company to be called Anglo Teck. The new company plans to focus on three goals: Keeping mines open longer, expanding processing capacity, and identifying additional copper projects. Teck said the merger, if approved, should deliver annual pre-tax synergies of about $800 million.
China’s control over critical minerals has increased their prices. That, in turn, works in favor of companies such as Alcoa and Teck, as it makes it more profitable, in some cases with governmental support, to mine and process critical minerals like copper and gallium.
Both stocks have seen their shares jump more than 70% over the past year as investors realize they are financially healthy and poised to get even healthier.
Before you buy stock in Alcoa, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alcoa wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of April 25, 2026.
James Halley has no position in any of the stocks mentioned. The Motley Fool recommends Teck Resources. The Motley Fool has a disclosure policy.
2 Mining Stocks to Play the Mining Shortage was originally published by The Motley Fool
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
