Metallium Faces Scale-Up Challenges After US$1M Defense Contract

US$1 Million Contract Advances Critical Metals Extraction

Metallium Limited’s U.S.-based affiliate, Flash Metals Texas Inc., has secured a US$1 million Phase II Small Business Innovation Research (SBIR) contract from the U.S. Department of War via the Defense Logistics Agency. This award follows a rapid and successful Phase I, where the company demonstrated its Flash Joule Heating (FJH) technology’s ability to recover gallium from semiconductor and electronic waste streams, meeting or exceeding all technical milestones in half the usual timeframe.

The Phase II contract will focus on expanding the technology’s scope to include germanium extraction alongside gallium, both critical materials for advanced defence and communications systems. Activities will be conducted at Metallium’s Gator Point Technology Campus in Texas, aiming to optimise operating conditions and demonstrate repeatable, industrially relevant pilot-scale operations.

Addressing Strategic Supply Chain Vulnerabilities

Gallium and germanium are vital for radar, semiconductors, and 5G infrastructure, yet the U.S. is entirely dependent on imports, with China dominating global primary production. Metallium’s technology offers a pathway to diversify supply by recovering these metals from electronic waste, a largely untapped domestic resource. This aligns with increasing U.S. government efforts to secure critical material supply chains amid tightening Chinese export controls that have distorted global pricing and availability.

Germanium supply is particularly constrained, with over 70% import reliance and recent import declines of approximately 67% in 2025. Gallium faces similar challenges, prompting intensified government focus on domestic sources. Metallium’s approach could reduce reliance on concentrated primary production while extracting other valuable metals like gold and silver from e-waste.

Technology Scale-Up and Commercial Prospects

The twelve-month Phase II program targets readiness beyond pilot demonstration, positioning Flash Metals Texas for a potential Phase III award and broader commercial deployment. This timeline dovetails with Metallium’s operational plans for its Texas campus, where multi-reactor Flash Joule Heating operations are advancing. The recent 12-hour continuous FJH reactor campaign completed milestone demonstrated stable, repeatable operation exceeding throughput expectations, reducing scale-up risks ahead of commercialisation.

Additionally, Metallium has secured binding contracts for half of its targeted US printed circuit board feedstock, ensuring feedstock supply diversity critical for scaling operations at the Texas facility. This 50% of 8,000 tpa PCB feedstock contracted milestone underpins the company’s capacity to process sufficient volumes to meet demand.

The Phase II award also complements Metallium’s recently announced collaboration with Indium Corporation, a major U.S. refiner of gallium and germanium, which underpins a 10-year offtake agreement for recovered metals. This partnership strengthens Metallium’s commercial foundation and supports U.S. supply chain resilience for strategic technology metals.