MTM and Helios will Benefit as the US Hunts for Home-Grown Supplies of Critical Metals and Energy

The Middle East has once again become a hotbed of geopolitical tension, with the recent flare-up between Iran and Israel drawing global attention. As the situation escalates, energy markets are feeling the tremors, and the broader impact on global trade, particularly oil prices, is becoming increasingly apparent. Amid this volatility, investors are closely watching companies like Helios Energy (ASX: HE8) and MTM Critical Metals (ASX: MTM), which stand to benefit from the US’ growing focus on securing home-grown supplies of energy and critical resources.

 

Geopolitical Landscape and Its Impact on Global Energy Markets

In June 2025, the already tense relationship between Iran and Israel reached a boiling point. Israeli airstrikes targeting Iranian military facilities were met with swift retaliation by Iran. Soon after  the United States joined the fray, striking Iranian nuclear sites, further exacerbating the situation. This escalation, combined with the ongoing threat of the Strait of Hormuz being blocked, a crucial choke point for global oil supply, sent oil prices soaring. Brent crude prices reacted sharply, with some market forecasts suggesting a potential 10% surge in response to escalating tensions. As these tensions evolve, the ripple effects on energy prices and supply chains are undeniable. Companies like MTM Critical Metals (ASX: MTM), which is leveraging Flash Joule Heating technology for mineral extraction, stand to benefit from the U.S.

 

U.S. Push for Home-Grown Supply: A Shift Toward Domestic Resources

The geopolitical instability in the Middle East underscores the vulnerability of the global supply chain. Critical metals like lithium, rare earth elements, and cobalt are integral to this shift, and MTM Critical Metals is strategically positioned to meet this demand. By focusing on Flash Joule Heating to extract these materials with a minimal environmental impact, MTM is not just offering a sustainable solution but is also securing key offtake agreements to ensure supply chains remain intact.

These agreements are integral to the company’s future growth, positioning it as a reliable partner in the race for resource independence. As such, the U.S. is shifting its focus toward securing critical resources from domestic sources. This strategic pivot is aimed at reducing reliance on politically volatile regions and ensuring the stability of supply chains for vital commodities, including rare earth metals, lithium, and uranium, resources that are integral to both traditional and renewable energy sectors.

 

Helios Energy (ASX: HE8): A U.S.-Focused Oil and Gas Explorer with Emerging Interest in Helium

Helios Energy (ASX: HE8) is an Australian oil and gas exploration company whose flagship asset is the Presidio Oil Project located in the prolific Permian Basin of West Texas, where the company is targeting significant new unconventional oil reservoirs. The Permian Basin is a big reason why the United States regained its energy independence around 2014, thanks to the fracking revolution. The Basin now contributes around half of all US oil in an environment where President Trump has been encouraging operators to “drill baby, drill”, Helios Energy sits in the box seat.

HE8 is currently evaluating the ground at Presidio to better understand the potential of the project area and is looking to rapidly re-lease ground that covers its recently published 2C Contigent Resource.

 

MTM Critical Metals (ASX: MTM): A Leader in Flash Joule Heating and Securing the Future of Critical Minerals

MTM Critical Metals (ASX: MTM) is an Australian exploration company at the forefront of securing critical minerals essential for clean energy technologies. While the company has traditionally focused on rare earth elements, lithium, and other high-value metals, its strategic shift in 2024 towards Flash Joule Heating is positioning it to be a leader in next-generation mineral extraction technologies.

Flash Joule Heating offers a revolutionary way to process critical metals with minimal environmental impact, giving MTM a significant edge over traditional mining methods. This cutting-edge approach is expected to drastically reduce the environmental footprint associated with mineral extraction.

Additionally, MTM is building its pilot plant in Houston, Texas, and can be a big contributor to the US’ strive to become less dependent on China when it comes to securing critical metals for a range of applications, including Defense.

MTM has already secured multiple offtake deals, including one with Indium Corp., a global leader in advanced materials, including indium, gallium and germanium. These agreements with global partners will help the company to scale up its operations in line with the increasing global demand for critical resources. MTM’s focus on Flash Joule Heating and its expanding network of strategic partnerships make it a standout player in the critical minerals space, poised for growth as countries worldwide race to secure domestic supplies.

MTM, soon to be renamed Metallium Ltd., just completed a A$50m capital raise at 55 cents, which will help it fund the first operational site in Texas processing 1 tonne per day in addition to 4 more sites elsewhere in the US.

Check out all the research on MTM by Pitt Street Research here!

 

The Impact of Geopolitical Tension on Global Investment Sentiment

Investor sentiment in the wake of geopolitical tensions tends to be volatile, with markets often reacting swiftly to events like the Iran-Israel conflict. However, for investors in companies such as Helios Energy and MTM Critical Metals, the long-term prospects remain strong given the increasing demand for critical minerals and secure energy supplies positions.

As investors seek out safer, more stable investments in the face of global uncertainty, companies involved in the extraction and production of critical resources are likely to become more attractive. The increasing interest from institutional investors in companies like HE8 and MTM is illustrated by the 100% institutional uptake of MTM’s recent placement.

 

The Long-Term Outlook for Helios Energy and MTM Critical Metals

The long-term outlook for Helios Energy and MTM Critical Metals is bright. As the U.S. pushes to secure its own supply of critical resources, demand for Australian companies in this space will likely rise. The geopolitical tensions in the Middle East only serve to highlight the vulnerabilities of the global supply chain and the importance of securing stable, domestic resources.

Both companies are poised to benefit from these shifts in the global market, with Helios Energy focused on US-based unconventional oil and gas exploration, while MTM is set to capitalise on the increasing demand for critical minerals. With Flash Joule Heating at the core of their extraction process and recent offtake agreements that will help secure future revenues, we believe MTM is well-positioned for significant growth in the next decade.

 

Disclosure: Pitt Street Research / Stocks Down Under directors own shares in MTM and HE8.

Both MTM and HE8 are research clients of Pitt Street Research.

 

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Frequently Asked Questions (FAQs)

• What is Helios Energy’s role in the renewable energy sector?

  Helios Energy is focused on oil exploration in Texas.

• What is MTM Critical Metals’ role in the clean energy sector?

  MTM Critical Metals is leading the charge in securing critical minerals in the US. By focusing on Flash Joule Heating, the company is revolutionising mineral extraction with sustainable methods.

• How does geopolitical tension affect global energy markets?

  Geopolitical tension, particularly in regions like the Middle East, can disrupt global oil supply chains and cause volatility in energy prices. This can prompt countries to seek more stable, domestic energy sources, benefiting companies involved in renewable energy and critical mineral extraction.

• How does Flash Joule Heating benefit the environment?

  Flash Joule Heating is an environmentally friendly extraction method that requires less energy compared to traditional mining extraction methods, significantly reducing its carbon footprint.

• Why is the US focusing on securing domestic supplies of critical metals and energy?

  The US aims to reduce its reliance on foreign supply chains for critical minerals, particularly from unstable or adversarial regions, like China. By securing domestic sources of materials, like rare earth elements, the US can enhance its security position independently of other countries.