May 16th, RTX Corporation (NYSE:RTX) announced the signature of a Memorandum of Understanding (MOU) between Tawazun Council and Emirates Global Aluminum (EGA) to develop gallium extraction and purification capabilities for the alumina purification of EGA in Abu Dhabi.
The initiative is set up to make the UAE the second largest producer of Gallium. This is a key element used throughout the global supply chain. It is used in the production of electric vehicles, semiconductors, communications infrastructure and medical devices. From a defensive perspective, gallium is an important component used in a variety of defense products, including advanced radar.
Factory line of robot arms that assemble gallium nitride field effect transistors (FETs).
The agreement may ensure access to Gallium for several companies, including RTX Corporation (NYSE: RTX). Paolo Dal Cin, senior VP of RTX operations and supply chain, said in a signature by the MOU:
“The aerospace and defense industry relies on stable access to rare earth elements. Today’s agreement places us on the path to a reliable supply of gallium needed to produce critical aerospace and defense solutions.”
This move further expands the footprint of RTX Corporation (NYSE: RTX) in the UAE. This is to produce coyote counter drone systems in the country following a recent strategic agreement with the Tawazun Council.
RTX Corporation (NYSE:RTX) stocks have skyrocketed 17% since the start of the year, against the backdrop of recent positive developments like these and several high-value defense contract awards.
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Disclosure: None.
