Metallium's Gallium Recovery Deal Signals Major Shift in Critical Metals Production Strategy

Metallium Limited (MTM.AX) made headlines on Friday as its U.S. subsidiary Flash Metals USA entered into a binding Letter of Intent with ElementUSA, marking a significant step toward commercializing gallium and scandium extraction from Louisiana’s abundant red mud reserves. The strategic alliance represents a watershed moment for domestic rare metal production, particularly as global supply chains for critical materials face increasing scrutiny.

The collaboration comes with substantial financial backing—ElementUSA has committed up to $10.1 million in non-dilutive funding to accelerate deployment of Metallium’s proprietary Flash Joule Heating technology. This innovative approach converts thermal energy into recoverable material, addressing a longstanding challenge in metal extraction efficiency. Beyond the capital injection, the agreement establishes a comprehensive commercial framework encompassing licensing arrangements, royalty structures, and revenue distribution mechanisms between the parties.

ElementUSA’s planned demonstration facility in Gramercy, Louisiana will serve as the proving ground for this gallium extraction methodology. The facility’s development hinges on the successful integration of Metallium’s thermal processing technology with ElementUSA’s existing infrastructure, a collaboration designed to validate commercial viability before full-scale rollout.

Market sentiment reflected cautious reception to the announcement. MTM.AX shares closed Friday’s trading session at AUD 0.78, representing a decline of AUD 0.075 or approximately 8.72 percent on the Australian Securities Exchange. The price movement likely reflects broader equity market conditions rather than investor skepticism toward the partnership itself, given the partnership’s strategic significance in establishing U.S.-based gallium production capacity.