• FJH upgrades REE feedstocks into high-grade SX-ready products
• Collaboration with Rice University to test direct REE separation via FJH
• Aims to reduce reliance on China's dominant REE refining capacity

Metallium Ltd (ASX: MTM) provides an update on its rare earth element (REE) processing strategy. The company's patented Flash Joule Heating (FJH) technology has already demonstrated breakthroughs in upgrading REE feedstocks across traditional flowsheets, producing high-value intermediates that are directly compatible with existing solvent extraction (SX) separation plants. This provides Western developers with a plug-in midstream solution today, while Metallium is also collaborating with Rice University to test whether FJH can go further and directly separate individual REEs, potentially reducing or even replacing the need for large SX plants. Metallium's dual-track strategy focuses on: 1) FJH as a plug-in midstream step, upgrading feedstocks into SX-ready products that capture higher payables and reduce reliance on Chinese toll refining; and 2) the Rice University collaboration to test direct REE separation, which could unlock a potential breakthrough that provides the missing piece for Western supply chains. Metallium is targeting multiple feedstocks, including mining ores, industrial residues, MREC, magnet scrap, and heavy REE intermediates, to deliver case studies and secure licensing and partnership revenues in the near term, while the Rice University research builds long-term upside from direct separation.

Metallium is positioned to deliver near-term revenues from partnerships and licensing of its FJH technology, while the collaboration with Rice University aims to develop a potential breakthrough in direct REE separation, reducing reliance on China's dominant refining capacity and providing a missing piece for Western supply chains.