Australian-based industrial technology company Metallium has agreed to work with a US company called ElementUSA to extract two important metals, gallium and scandium, from red mud at its demonstration facility in Gramercy, Louisiana.The project will focus on using Metallium’s proprietary Flash Joule Heating (FJH) technology, which involves passing of a direct current through a material, where the resistance of the material itself converts electrical energy into heat energy. 

Being home to a nationally significant alumina refinery, Gramercy holds around 30 million tonnes of red mud feedstock that offers long-term processing potential. 

Under the agreement, Metallium will receive up to USD 10.1 million (AUD 15.16 million) in non-dilutive funding. This funding will be used to install and commission FJH units across two stages. Phase A will be a pilot phase to validate the performance on red mud through installation and baseline demonstration of the first FJH units at ElementUSA’s Anahuac, Texas facility, involving an indicative budget of USD 3.7 million. On the other hand, Phase B will involve relocating the technology and scaling it up at Gramercy, at a budget of USD 6.4 million. Progression between phases will depend on performance milestones and site readiness.

Long-term commercial structure

The agreement goes beyond a pilot project, establishing a long-term commercial framework for Metallium. For every commercial plant constructed beyond the initial stages, ElementUSA and/or its affiliates will have to pay a licence fee and per-tonne processing royalties based on throughput to Metallium. In addition, the latter will also receive a share of revenue from sales of recovered gallium, scandium and associated metals.

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Michael Walshe, Managing Director of Metallium noted that gallium and scandium are critical metals. Both of them play a vital role in defence systems, semiconductor manufacturing and advanced materials, while supply within Western markets continues to remain limited.

He described, “This is a significant milestone for Metallium and a strong endorsement of our FJH technology within a major industry-supported effort to expand domestic critical-minerals capability. Our partnership with ElementUSA positions Metallium at the centre of the US effort to build sovereign capability in these metals.” 

He added, “The commercial terms create long term value through technology licence fees, per tonne royalties and revenue share, while securing access to highly strategic sites with deep water port access.”

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A broader shift toward urban mining

The project reflects a wider trend toward urban mining and waste valorisation. Red mud has long been seen as an environmental liability. New processing technologies are now turning it into a potential source of critical materials.

“It also delivers immediate diversification for Metallium by establishing commercial opportunities in both urban mining and mineral processing,” Walshe said. “The broader US effort to strengthen domestic processing capability for critical materials aligns closely with Metallium’s technology positioning.”

The two companies will now advance detailed documentation and preparatory work. They will negotiate a Development Agreement and a Licensing Agreement within the 180-day LOI period.Movement from the initial laboratory stage through Phase A and Phase B will depend on the technology meeting agreed technical performance benchmarks and the successful completion of the final binding agreements.

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