MTM Critical Metals (ASX: MTM) has made a significant stride in revolutionising rare earth element (REE) processing, unveiling advancements in its proprietary Flash Joule Heating (FJH) technology. This cutting-edge method achieves unprecedented efficiency and sustainability in a sector pivotal to industries such as electric vehicles, renewable energy, and defence. Following a strategic $7.5 million placement completed late last year, MTM is well-funded and poised for a transformative 2025.
MTM’s FJH technology employs a single-step carbo-chlorination process to convert rare earth concentrates into high-purity chlorides. This method replaces traditional processes that rely on energy-intensive sulphuric acid baking and solvent extraction, which generate significant waste and require large volumes of water.
Simplified flowsheet comparison of convention vs FJH process for treating monazite REE concentrate
Key outcomes from the recent optimisation include:
Michael Walshe, MTM’s Managing Director and CEO, emphasised the transformative potential of the technology. “The optimisation achieved underscores our ability to not only match traditional processing methods but exceed them in recovery rates while offering substantial environmental and economic benefits.”
The FJH process rapidly heats monazite-rich flotation concentrates, leveraging carbo-chlorination reactions to achieve high efficiency. The materials are subjected to flash heating, converting rare earth oxides into water-soluble chlorides in a matter of seconds. Scanning Electron Microscopy (SEM) and Inductively Coupled Plasma Mass Spectrometry (ICP-MS) were used to analyse the residues, confirming the robustness of the process.
The simplified workflow eliminates multi-stage leaching and sulphuric acid baking, making it a greener, cost-effective solution. Traditional REE processing generates large volumes of gypsum waste and requires extensive infrastructure, whereas MTM’s method operates with fewer inputs and reduced environmental liabilities.
In December 2024, MTM raised $7.5 million in a strategic placement to institutional investors, including Pengana Capital and Terra Capital. Pengana committed $4 million to become a substantial shareholder, while Terra increased its existing stake. The placement was completed at the last traded price without a discount, reflecting strong investor confidence.
Proceeds are earmarked for scaling the FJH technology, advancing MTM’s Texas-based demonstration plant, and accelerating commercialisation efforts. The demonstration facility will validate the technology’s industrial applicability, with design completion targeted for February 2025.
“This placement is a transformative milestone,” Walshe said. “The calibre of investors highlights the growing recognition of our mission to revolutionise critical metals processing and strengthen U.S. supply chains.”
MTM’s advancements are timely, addressing global supply chain vulnerabilities and environmental concerns. The company’s streamlined method directly aligns with U.S. efforts to onshore critical metals refining, reducing reliance on China, which dominates global REE processing.
“Nations are prioritising self-reliance in critical metals,” Walshe noted. “Our technology provides a compelling solution to bolster domestic production, particularly in the U.S., where critical minerals are vital for national security and technological innovation.”
MTM has a robust pipeline of milestones ahead. Alongside the Texas demonstration plant, the company will continue testing FJH technology across diverse feedstocks, including lithium and e-waste. Strategic partnerships, potential non-dilutive funding, and binding offtake agreements are also on the agenda.
MTM’s innovations in REE processing place it at the forefront of critical mineral technology. By combining cutting-edge science with a clear commercialisation strategy, the company is addressing the growing demand for cleaner, more efficient supply chains.
With institutional backing, a strong financial position, and a commitment to innovation, MTM is well-positioned to reshape the future of rare earth processing. For investors, the company represents a high-potential opportunity in a sector poised for sustained growth.