Why Metallium (ASX: MTM) Shares Jumped 14% After Landmark Ucore Collaboration

Metallium Surges as U.S. Rare Earth Supply Chain Play Gains Momentum

Metallium (ASX: MTM) caught investor attention today after its shares climbed 14 percent on the back of a binding collaboration with Ucore Rare Metals, a U.S. Department of War-backed leader in rare earth separation. At the heart of this agreement is the integration of Metallium’s Flash Joule Heating technology with Ucore’s RapidSX platform, creating what could be the first fully U.S.-based refining pathway capable of processing a wide range of rare earth feedstocks.

This is a pivotal development for Metallium. It not only provides proof of concept opportunities to advance its refining process but also opens the door to significant funding support from the U.S. Department of Defense. Just as important, the company is sharpening its focus on the most supply-constrained and strategically critical elements, dysprosium and terbium, which play an essential role in electric vehicles, renewable energy, and defense systems.

The real question for investors is whether this partnership represents the first step toward positioning Metallium at the center of a new U.S. rare earth supply chain.

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How Metallium and Ucore Aim to Break China’s Rare Earth Grip

This collaboration directly aligns with MTMs growth initiatives due to the sovereign U.S. supply chain risks as China controls around 85 percent of global refining capacity and more than 95 percent of heavy rare earth separation. 

The opportunity goes well beyond geopolitical alignment. Metallium’s Flash Joule Heating process can upgrade complex feedstocks such as mine concentrates, tailings, magnet scrap, and e-waste into high-purity chlorides in a single step. 

This reduces costs and eliminates the need for thousands of conventional solvent extraction stages. Ucore’s RapidSX platform has already demonstrated the ability to separate feedstocks up to three times faster than traditional methods. Together, these technologies could provide the U.S. with scalable refining capacity that can handle a wide variety of feedstocks, creating new pathways for Western rare earth developers who are currently dependent on Chinese processing.

Metallium Taps Into U.S. Magnet Recycling as Growth Accelerates

This collaboration also gives Metallium an entry point into the U.S. magnet recycling market, a sector expected to expand rapidly as demand for neodymium, praseodymium, dysprosium, and terbium increases. These four magnet rare earth elements are essential for electric vehicle motors and must be refined to 99.99 percent purity to be usable in advanced technologies.

The Investors Takeaway

Looking forward, the partnership has the potential to mark a step change in Metallium’s growth trajectory, aligning the company with U.S. funding opportunities while also supporting near-term revenue generation from its Texas demonstration plant. That said, risks remain. The collaboration is limited to 12 months, and commercial terms are not yet defined. Scaling new technologies is inherently complex, and competition for U.S. government funding is growing. Execution risk, regulatory approvals, and the requirement for significant capital investment all have the potential to influence long-term value creation.