Metallium (ASX:MTM) LOI With ElementUS Marks a Strategic Step Toward US Expansion

Metallium’s LOI With ElementUS Turns U.S. Opportunity Into Execution Path

Metallium (ASX:MTM) has been trading with real strength, and at first we thought this might be tied to an update on the Glencore partnership, which was expected toward the end of the year. Instead, the company announced something different but still strategically important. MTM has signed a letter of intent with ElementUS to advance domestic gallium and scandium recovery from red mud feedstock in the US.

The agreement also includes the potential for up to US$10M in non dilutive funding tied to contingent milestones. This immediately tells us that MTM is becoming more integrated into the US critical minerals processing landscape, and that new partnerships are beginning to validate its technology pathway.

At the same time, the key risk is still front and centre. MTM needs to show that its process can scale, and the company has framed this journey across two defined phases. Investors should recognise that the momentum is encouraging, and the strategic positioning looks stronger than it did even a few months ago. But tangible proof of scalability is what will ultimately shift MTM from a promising technology story into a revenue backed critical minerals player.

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Metallium Enters Execution Mode

In order to receive the funding, MTM needs to meet several key milestones. The first is Phase A, which involves initial lab testing and validating the pilot installation at the Texas facility. The second is Phase B, which focuses on scaling up operations in Gramercy (Another demonstration facility) and is targeted within the next six months. Phase A covers the installation and operation of the first FJH units at Metallium’s Anahuac, Texas site to confirm performance on red mud and establish a baseline demonstration. Phase B involves relocating and expanding the operation to Gramercy, Louisiana, for a larger-scale build-out.

For investors, this partnership agreement is important because it directly addresses the main tension in the MTM story, which is the scalability of the flash joule heating technology. Demonstrating progress across these two phases would materially de-risk that concern, so staying updated on the LOI will be essential for anyone following the MTM investment case.

The Revenue Pathways

There is also a developing revenue pathway that gives us a clearer view of how Metallium can ultimately generate income. The first piece is the funding we have already discussed. The second is expected licensing fees for each plant that integrates FJH, which the company estimates will be in the low to mid-six-figure range per plant each year. MTM will also be able to charge processing fees of US$15 to US$40 per tonne of ore. With a potential long-term feedstock from ElementUSA of around 30 million tonnes, this creates a sizeable opportunity. Based on these figures, revenue over the long term could range from roughly US$450M to US$1.2B.

The investor’s takeaway for MTM

For investors, the LOI strengthens Metallium’s valuation case by demonstrating the commercial viability of FJH and providing visibility on government-aligned revenue paths, even before deals such as Glencore, Arribert, or the Harts Range REE project fully materialise. The potential for non-dilutive funding is another clear advantage. Coverage is still very light, with only one analyst rating MTM a buy and a price target of A$1.60. Ultimately, investors will need to see validation of scale to justify a sustained rerating, but the direction of travel is becoming more encouraging.