MTM Critical Metals' Revolutionary Tech Could Supply US Critical Gallium Needs by 2025

• MTM Critical Metals has a global patented Flash Joule Heating (FJH) technology for mineral ores and scrap material
• Technology enables selective recovery of target metals more efficiently than traditional methods
• Targeting lithium, rare earths, gallium, germanium, indium; can pivot to different metals based on market
• Finalizing design of 1 ton/day modular pilot plant; aiming for commercial production and cash flow in 2025
• Licensing, processing fee, and shared metal value revenue model; partnerships with DOD, DOE, and major industry players

As the global transition to clean energy accelerates, securing stable supplies of critical metals has become a top priority. However, traditional metal extraction and refining methods face challenges in terms of efficiency, cost, and environmental impact. MTM Critical Metals (ASX:MTM), an industrial technology company, aims to address these issues with its innovative Flash Joule Heating (FJH) technology for metal recovery and mineral processing. By enabling more selective, efficient, and scalable extraction of high-value metals, MTM's technology could play a key role in strengthening critical metal supply chains.

The Technology 

MTM's FJH technology was originally developed at Rice University for graphene manufacturing. It has since been adapted and exclusively licensed by MTM for application to mineral ores and metal-containing scrap materials. As CEO Michael Walshe explains,

The technology essentially allows you to distill off the target metal of interest leaving the unwanted stuff behind.

The process dramatically reduces the number of steps required compared to traditional hydrometallurgical and pyrometallurgical methods. For example, in lithium extraction from spodumene, flash heating under a chlorine atmosphere allows direct recovery of lithium chloride, eliminating the energy-intensive calcination step. According to Walshe,

Instead of 3 hours in a kiln, we were able to flash the material in our flash joule heating and it took only a matter of minutes to achieve that same effect.

Target Metals and Markets 

MTM is initially focusing on high-value metals where its technology offers the greatest advantage over incumbent techniques. These include lithium from spodumene, rare earth elements from monazite, and specialty metals gallium, germanium, and indium recovered from manufacturing scrap. The addressable markets are significant, with Steve Ragiel, President, Flash Metals USA (a 100%-owned subsidiary of MTM) noting,

The total addressable market on the gallium, indium, germanium side is over $10 billion a year, and on the e-scrap side it's more towards the $70 billion a year.

Importantly, the process is "feed stock agnostic", allowing MTM to pivot to different metals as market conditions evolve. Walshe says,

The flexibility of the technology means that we can pivot as we need to to these other metals. Gallium, germanium we're very fortunate especially with the whole Trump administration and the geopolitical tensions with China, we think that the next four years in particular are going to be very favourable to what we're trying to do onshore back to the US.

Interview with Michael Walshe & Steve Ragiel

Competitive Advantage of MTM's technology:

• Efficiency: Faster reaction times, lower energy use, reduced acid consumption
• Selectivity: Targets recovery of desired metals, resulting in a purer product
• Scalability: Modular units enable distributed, small-scale production
• Lower costs: Reduced CAPEX and OPEX requirements compared to traditional methods

As Ragiel notes,

The ability to implement in a much smaller scale provides flexibility to our customers and we can localize the plants much closer to the mine face or to where their recycled materials are for $10 or $20 million, whereas a new rare earth element refining capacity plant may need $400 or $700 million.

Commercialization Plan 

MTM is finalizing the design of its one ton per day modular pilot plant which is due for completion in February 2025. The plant is being engineered to demonstrate the process on five different feedstocks including spodumene, monazite, niobium, antimony, and e-scrap.

In parallel, MTM is advancing commercial partnerships, with the most mature being an MOU with Indium Corp. to recover gallium, germanium, and indium from manufacturing scrap. According to Walshe,

Even at one ton per day, the gallium opportunity is commercial. The total consumption of gallium in the US is about 400 to 500 tons per annum, so this one ton per day plant could address most of the US's needs.

The revenue model will be tailored to each metal and partnership, but will generally include a combination of licensing fees, processing fees, and a share of recovered metal value. This aligns MTM's interests with maximizing recovery.

Funding and Partnerships 

MTM has raised an investment from Pengana Capital, giving it an institutional investor base. The company has sufficient funds to build and commission the pilot plant and operate until at least the end of 2025.

The company is also pursuing partnerships and grant funding opportunities with the US Department of Defense and Department of Energy. MTM's technology aligns well with government initiatives to secure domestic critical metal supply chains. As Ragiel notes,

We have three different groups that we're working with that already have an active grant program that they're working on with the Department of Defense and subsidiaries, sub companies, subgroups in the DOD.

The Investment Thesis for MTM Critical Metals:

• Patented, disruptive metal extraction technology enabling cost-effective, selective recovery
• Targeting $10B+ markets in lithium, rare earths, gallium, germanium, indium with urgent supply security needs
• Design for 1 TPD pilot plant nearing completion; path to commercial production and revenue in near future
• Strategic partnerships with industry, government agencies aligning with national critical mineral initiatives
• Agile business model combining licensing fees, tolling revenue, and profit share
• Scalable modular technology enabling distributed production and phased capex
• Attractive valuation with near-term commercialization and long-term intellectual property value
• Strong management team with metallurgical expertise and industry relationships

Macro Thematic Analysis: 

The global energy transition is driving explosive demand growth for critical metals used in clean energy technologies like batteries, electric motors, and solar panels. Lithium, rare earths, gallium, and other specialty metals are essential, but are vulnerable to supply disruptions due to geographic concentration of primary production and lack of domestic refining capacity in the US.

This has made securing stable critical metal supplies a major priority for industry and government. The US has identified 50 critical minerals and is actively funding R&D and commercialization efforts to establish domestic supply chains. It aims to reduce reliance on imports, especially from geopolitical rivals like China.

In this context, technologies like MTM's flash joule heating that enable more efficient and agile critical metal production are very well-aligned with market needs.

Companies that can cost-effectively produce critical metals from domestic resources or recycled sources are likely to enjoy robust demand and policy support. By utilizing a modular technology that can target a range of metals, MTM has the potential to become a key player in secure, distributed critical metal supply chains.