Metallium Secures US$1M Department of War Contract for E-Waste Recovery

Metallium Secures US$1 Million U.S. Department of War Contract to Recover Gallium and Germanium from E-Waste

Metallium Limited (ASX: MTM | OTCQX: MTMCF | OTCQX ADR: MTLMY) has announced a significant milestone in its mission to establish domestic U.S. supply chains for defence-critical materials. The Metallium US Department of War contract for gallium and germanium recovery from e-waste marks a pivotal moment for Flash Metals Texas Inc., Metallium's U.S.-based affiliate, which has been awarded a US$1 million Phase II Small Business Innovation Research (SBIR) contract administered through the Defense Logistics Agency (DLA).

The programme will advance Metallium's proprietary Flash Joule Heating (FJH) technology toward pilot-scale deployment, targeting the recovery of gallium and germanium from electronic waste streams.

This is not a preliminary handshake — it builds directly on a completed Phase I programme that achieved all technical milestones in approximately half the standard timeframe, a result that speaks to both the credibility of the technology and the competence of the team delivering it.

What the Award Means and Why the Timing Is Critical

The SBIR programme represents one of the most competitive innovation funding mechanisms in the United States federal system. Being awarded a Phase II contract — particularly through the Defense Logistics Agency — signals that Metallium's technology has cleared rigorous technical and commercial scrutiny at the government level.

The context surrounding gallium and germanium supply makes this award especially consequential:

• The United States is 100% import-dependent for gallium, with China accounting for approximately 100% of global primary gallium production
• Germanium faces similarly acute constraints, with the U.S. recording greater than 70% net import reliance and domestic consumption of approximately 30,000 kg per year
• U.S. imports of germanium metal declined by approximately 67% in 2025, underscoring active and ongoing supply disruption
• China introduced export licensing requirements on both metals in 2023, causing Rotterdam benchmark prices to diverge sharply from Chinese domestic prices — a pricing wedge that reflects deepening Western supply insecurity

These are not theoretical risks. The supply disruption is already occurring, and Metallium is positioning its technology as a domestic solution at precisely the moment demand for one is most acute.

"This new contract sets us apart and validates our approach and our commitment to supporting national security priorities."
— Steve Ragiel, President of U.S. Operations, Metallium / Flash Metals Texas

The Technology: Flash Joule Heating Explained

What Is Flash Joule Heating (FJH)?

Flash Joule Heating is an electrothermal process that applies rapid, high-intensity electrical pulses to a material, generating extreme temperatures in milliseconds. This ultrafast thermal treatment breaks down complex material matrices — such as printed circuit boards and semiconductor waste — releasing target metals in forms that can then be captured and refined.

In Metallium's application, FJH is combined with chlorination chemistry (electrothermal chlorination) to selectively volatilise and recover metals like gallium and germanium from electronic waste streams.

Why Does This Matter to Investors?

Traditional primary mining and refining of gallium and germanium is heavily concentrated in China. Metallium's FJH approach offers a fundamentally different feedstock model — recovering these metals from existing electronic waste rather than virgin ore. This has several compounding advantages:

Phase I to Phase II: A Track Record Being Built in Real Time

The transition from Phase I to Phase II is not automatic — it requires demonstrated results. Metallium's Phase I programme delivered on every front:

1. All technical milestones achieved or exceeded
2. Programme completed in approximately half the standard timeframe
3. Demonstrated gallium recovery from semiconductor and electronic waste streams

Phase II now expands the scope, adding germanium to the recovery programme alongside gallium, and advances the technology from laboratory-proven to pilot-scale, industrially relevant operation. Key Phase II objectives include:

• Optimisation of operating conditions for gallium and germanium recovery
• Improvement of recovery efficiency metrics
• Demonstration of repeatable, pilot-scale operation
• Integration with the operationalisation of the Gator Point Technology Campus in Chambers County, Texas

The twelve-month Phase II timeline is structured to culminate in process readiness beyond pilot demonstration — a deliberate step that positions Flash Metals Texas for a potential Phase III award and broader commercial deployment.

Gator Point Technology Campus: The Commercial Engine in Development

All Phase II activities will be conducted at Metallium's Gator Point Technology Campus in Chambers County, Texas. This facility serves as the operational base for the company's U.S. strategy and is being built out in parallel with the SBIR programme.

The campus represents the physical infrastructure through which government-funded development translates into commercial-scale production capacity. Furthermore, the co-development of the technology programme and the facility creates a compounding momentum effect — by the time pilot-scale validation is complete, the infrastructure to commercialise it is already in place.

Understanding Critical Materials: Gallium and Germanium in the Modern Economy

Understanding why these two metals matter is essential to appreciating the significance of this contract. Both gallium and germanium are formally designated as critical materials by the United States government, reflecting their irreplaceability in defence and technology applications and the structural fragility of current supply chains.

Gallium Applications

Gallium is a semiconductor material essential for:

• Radar and defence communication systems
• Gallium nitride (GaN) power electronics for electric vehicles and renewable energy
• Advanced semiconductors and integrated circuits
• Satellite electronics and missile guidance systems
• 5G infrastructure components and wireless communications
• LED technology and optical devices

Germanium Applications

Germanium is critical for:

• Optical fibre and infrared optics systems
• Satellite solar cells and space technology
• Semiconductor substrates for high-frequency applications
• Night vision and thermal imaging systems
• Medical imaging equipment
• Polymerisation catalysts in plastics production

U.S. Supply Vulnerability Snapshot

The strategic importance of these materials cannot be overstated. Gallium is essential for military radar systems that protect national airspace, while germanium is critical for satellite communications that underpin modern defence networks. Consequently, the concentration of global supply in China creates a strategic vulnerability that governments and companies are actively seeking to address.

Building Commercial Momentum: The Indium Corporation Connection

The SBIR Phase II award does not stand alone. It follows Metallium's previously announced offtake agreement with Indium Corporation — a major U.S. refiner of gallium, germanium, and other critical metals used in electronics, AI infrastructure, and defence applications. That collaboration, announced in March 2026, established a commercial pathway for the metals that the FJH technology will recover.

Together, these two developments form the backbone of a credible commercial narrative:

• Government validation through the DoW/DLA SBIR programme confirms the technology works and is strategically relevant
• Industry partnership with Indium Corporation provides an established off-take channel for recovered materials
• Physical infrastructure at Gator Point Technology Campus underpins the path from development to production

This combination of government support, commercial partnerships, and physical infrastructure represents a significant de-risking of Metallium's pathway to production. The company is not pursuing speculative technology development in isolation but rather executing a coordinated strategy with multiple validation points.

Market Dynamics: China Export Controls Reshape Global Pricing

The urgency surrounding domestic supply chain development is reflected in current market dynamics. Since China introduced export licensing requirements for gallium and germanium in 2023, global pricing has become increasingly distorted.

Rotterdam benchmark prices — representing Western market conditions — have diverged sharply from Chinese domestic prices, creating a pricing wedge that reflects supply security concerns. This divergence is not merely a temporary market distortion but rather a structural shift that reflects the strategic importance these materials have assumed in geopolitical competition.

Western governments and companies are increasingly willing to pay premium prices for secure supply, creating economic incentives for domestic recovery technologies like Metallium's FJH process. In addition, the pricing environment supports the economic viability of alternative supply sources, particularly when those sources can recover high-value co-products like gold, silver, and palladium from the same electronic waste feedstock.

Looking Ahead: Key Milestones on the Horizon

The next twelve months represent a critical execution window for Metallium. Investors should monitor the following anticipated developments:

The twelve-month timeline is designed to align with Metallium's broader commercialisation strategy. Success in Phase II positions the company for potential Phase III awards, which typically involve full-scale deployment and can represent significantly larger funding commitments from the U.S. government.

Why Investors Should Pay Close Attention

Metallium is operating at the intersection of three powerful and converging themes: critical materials supply security, defence technology independence, and electronic waste as a resource stream. Each of these carries structural, multi-year tailwinds — however, Metallium is not simply a thematic play. It is demonstrating tangible, milestone-driven execution.

The key pillars of the investment case at this stage include:

• Validated technology: Phase I completed ahead of schedule with all milestones achieved
• Government-backed development funding: US$1 million Phase II contract funds continued scale-up without diluting shareholders
• Commercial off-take in place: Indium Corporation agreement provides a route to market for recovered metals
• Strategically positioned feedstock model: E-waste recovery addresses supply chain vulnerabilities that primary mining cannot easily solve
• Clear path to Phase III and commercialisation: The twelve-month Phase II roadmap is explicitly structured toward that outcome

The convergence of these factors at a single company is rare. Most critical materials companies are pursuing either new mining projects with long development timelines or early-stage technologies without commercial validation. Metallium, by contrast, is advancing validated technology through government-supported milestones toward production in a strategically critical market.

The electronic waste feedstock model offers particular advantages in the current environment. Unlike traditional mining projects, which require years of permitting and development, Metallium's approach utilises existing waste streams that are growing rather than depleting. This positions the company to scale production capacity in response to market demand without the long lead times associated with mining development.

Key Takeaway:
The Metallium US Department of War contract for gallium and germanium recovery from e-waste validates its Flash Joule Heating technology as a credible domestic solution — addressing two of the most strategically sensitive materials in global defence and semiconductor supply chains. With a completed Phase I track record, an off-take partner already in place, and a Texas facility under active development, the company is advancing through de-risked, government-supported milestones toward commercial deployment. The next twelve months represent a pivotal window, and investors with exposure to critical materials and defence supply chain themes should be watching closely.

Want to Track Metallium's Progress as It Advances Toward Commercial Deployment?

Metallium is executing a milestone-driven strategy at the intersection of defence supply chain security and critical materials recovery — backed by a US$1 million U.S. Department of War contract, a completed Phase I track record, and an off-take agreement already in place with Indium Corporation. For investors seeking exposure to this emerging critical materials story, staying informed as the company advances through its Phase II programme and toward Gator Point Campus operationalisation will be key. Head to Metallium's investor hub to find out more and stay up to date.