Ashar Jawad
2 min read
In This Article:
On May 16, RTX Corporation (NYSE:RTX) announced the signing of a Memorandum of Understanding (MoU) with Tawazun Council and Emirates Global Aluminium (EGA) to develop gallium extraction and refining capabilities at EGA’s alumina refinery in Abu Dhabi.
The initiative is set to make the UAE the second-largest producer of gallium, a critical element used across global supply chains. It is used in the production of electric vehicles, semiconductors, telecom infrastructure, and medical devices. From a defense perspective, gallium is a vital component used in various defense products, including advanced radars.
A factory line of robotic arms assembling gallium nitride Field Effect Transistors (FETs).
This agreement is likely to secure access to gallium for several corporations, including RTX Corporation (NYSE:RTX). Paolo Dal Cin, Senior VP for Operations and Supply Chain at RTX, stated the following at the signing of the MoU:
"The aerospace and defense industry relies on stable access to rare earth elements. Today's agreement puts us on a path towards a reliable supply of gallium, needed for the production of critical aerospace and defense solutions."
The move has further expanded RTX Corporation (NYSE:RTX)’s footprint in the UAE, following a recent strategic agreement with the Tawazun Council to produce the Coyote counter-drone system locally in the country.
RTX Corporation (NYSE:RTX)’s shares have surged by 17% year-to-date, on the back of positive recent developments such as these and several high-value defense contract awards.
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Disclosure: None.
