Metallium (ASX: MTM) has executed a binding Letter of Intent (LOI) with ElementUSA to deploy its Flash Joule Heating technology in a new program targeting gallium and scandium recovery from red-mud waste in Louisiana.
The agreement allocates up to US$10.1 million in non-dilutive funding across pilot and scale-up phases to support installation, commissioning and operation of Metallium’s units, anchoring the company within a nationally significant initiative to expand domestic US supply of strategic metals.
Metallium’s US subsidiary Flash Metals USA will support ElementUSA’s development of a demonstration facility designed to separate and purify gallium and scandium from industrial waste streams including red mud.
ElementUSA operates the Critical Resource Accelerator in Texas, providing advanced process development, flowsheet modelling, and scale-up expertise across complex feedstocks.
Chief executive officer Michael Walshe said the partnership positions Metallium at the centre of the US effort to build sovereign capability in these metals while creating long-term value through licence fees, per-tonne royalties and revenue share.
Funding and Deployment Structure
The LOI allocates a maximum of US$10.1m across two initial deployment stages for installation and operation of Flash Joule Heating units.
Phase A will establish baseline performance at Metallium’s Anahuac facility in Texas, supported by an indicative budget of US$3.7m, while Phase B will relocate and expand operations to Gramercy, Louisiana, with an indicative budget of US$6.4m linked to site readiness and performance milestones.
Metallium will receive technology-licence fees for any commercial plants developed after the initial deployment stages, with fees expected to fall within a standard commercial range for advanced metallurgical processes, and will also receive throughput-based processing fees ranging from US$15 to US$40 per tonne depending on volumes.
“This program is exactly the type of high-impact deployment we have been targeting and provides a scalable pathway to commercialise our technology across multiple strategic feedstocks,” Mr Walshe said.
“It also delivers immediate diversification for Metallium by establishing commercial opportunities in both urban mining and mineral processing, creating a unique competitive moat around our business, [and] the broader US effort to strengthen domestic processing capability for critical materials aligns closely with Metallium’s technology positioning.”
Path to Definitive Agreements
The LOI forms the basis for various agreements that will define scope, milestones, and progression conditions across the Lab Phase, Phase A, and Phase B, with Metallium and ElementUSA set to advance detailed documentation and preparatory work for initial installation and testing.
Progression to each subsequent stage will require jointly agreed technical milestones as part of the established staged-deployment framework.
Metallium will retain full ownership of its Flash Joule Heating intellectual property, including enhancements developed during the collaboration, while ElementUSA will retain ownership of its separation and refining technologies as part of the agreed structure.
Both parties may evaluate additional work programs covering potential recovery of aluminium, titanium, and sodium, along with assessment of residual products suitable for clinker-substitute applications.
The LOI includes a short exclusivity period to complete the definitive agreements, with the term set at 180 days unless extended by mutual consent.
