Credit: NATO
The North Atlantic Treaty Organisation (NATO), a political and military alliance of 31 member nations across Europe and North America, has identified Gallium, Germanium, and Rare Earth Elements (REEs) among 12 raw materials as essential for defence and energy security. These critical minerals underpin the production of advanced technologies used in defence systems, from radar and satellite communications to missile guidance and fighter jets.
Source: Strategic raw materials for defence Mapping European industry needs Benedetta Girardi, Irina Patrahau,
Giovanni Cisco and Michel Rademaker The Hague Center for Strategic Studies, January 2023
This decision is no knee-jerk reaction. It stems from a growing recognition of supply chain fragility, particularly as China dominates the global supply of these materials. For example:
- Gallium: Over 95% of the world’s supply originates from China, primarily as a by-product of aluminium refining.
- Germanium: A crucial input for infrared optics and fibre communications, Germanium faces a similar reliance.
- REEs: China processes roughly 85% of the world’s Rare Earth production.
The tipping point came in July 2023, when China imposed export restrictions on Gallium and Germanium, sending prices soaring and exposing the West’s strategic vulnerability. NATO's announcement, endorsed by defence ministers in mid-2024, is part of a coordinated effort to reduce dependence on single-source nations, bolster defence readiness, and safeguard energy and technological resilience.
For Perth-based MTM Critical Metals (ASX: MTM), this geopolitical realignment couldn’t be better timed.
Flash Joule Heating: Sustainable, Scalable, and Now Strategic
At the heart of MTM’s strategy lies its proprietary Flash Joule Heating (FJH) technology, an innovative solution to extract metals like Gallium and Germanium from unconventional sources such as industrial waste, mine tailings, and e-waste. Developed in collaboration with Rice University, FJH is faster, cleaner, and more energy-efficient compared to traditional methods.
As NATO underscores the importance of securing these supply chains, MTM’s sustainable approach positions it as a future cornerstone in the push for independence from Chinese-dominated markets.
Indium Corporation Collaboration: A Strategic Milestone
MTM’s recent partnership with Indium Corporation, a global leader in Gallium and Germanium refining, underscores its ambition to play a key role in this evolving landscape. The collaboration focuses on recovering ultra-high-grade scrap, containing up to 20% Gallium and 18% Germanium—materials increasingly sought after for defence and semiconductor technologies.
The deal delivers three major advantages:
- Validation – Indium’s backing provides external endorsement of MTM’s FJH technology.
- Feedstock Access – Indium’s supply of high-value scrap ensures critical inputs for scaling recovery solutions.
- Alignment with U.S. Policy – The collaboration directly supports America’s drive to localise critical metal supply chains, a priority amplified by NATO’s declaration.
Michael Walshe, MTM’s Managing Director, didn’t mince words:
“We are tackling supply chain vulnerabilities with an innovative approach to efficiently recover critical metals domestically, advancing efforts toward critical metal independence.”
Rare Earth Ambitions: Aligning with NATO’s Needs
While Gallium and Germanium headline NATO’s list, MTM is also advancing opportunities in Rare Earth Elements (REEs). These materials are crucial for military applications, including fighter jets, radar systems, and guided missile technologies.
MTM’s exploration assets in Western Australia’s West Arunta region and the Pomme Project in Quebec offer significant upside. The Pomme asset, notably similar to the world-class Montviel deposit nearby, is emerging as a promising REE target.
By combining its technological edge with strategic exploration, MTM is shaping up to meet NATO’s priorities head-on.
Expanding into the U.S. Market
MTM’s recent listing on the OTCQB Market (ticker: MTMCF) is another shrewd move. This dual listing broadens MTM’s reach to U.S. investors, aligning with America’s critical minerals focus and NATO’s growing supply chain urgency. Walshe noted:
“The OTCQB listing enhances accessibility for U.S. investors while showcasing our dedication to advancing sustainable technologies like FJH.”
Why NATO’s Decision Matters
NATO’s recognition of Gallium, Germanium, and REEs as defence-critical marks a decisive step in safeguarding member nations’ technological and operational readiness. By reducing reliance on Chinese-dominated supply chains, NATO aims to fortify access to materials vital for both military and clean energy technologies.
This initiative couldn’t be more significant. Disruptions to the supply of these metals threaten the production of radar systems, high-performance semiconductors, and renewable energy infrastructure—core pillars of modern defence and sustainability.
MTM’s cutting-edge technology and partnerships position it at the nexus of this critical realignment. Whether through its collaboration with Indium Corporation or its REE exploration projects, MTM is squarely aligned with NATO’s push for resilient, localised supply chains.
The Road Ahead
For MTM Critical Metals, NATO’s decision is more than a global policy shift—it’s a strategic tailwind. With Flash Joule Heating on the cusp of pilot-scale deployment, partnerships with global players like Indium Corporation, and exploration projects advancing in key regions, MTM is well-placed to capitalise on this geopolitical momentum.
As the West prioritises securing critical minerals, MTM’s sustainable and scalable solutions could see it punch well above its weight—delivering not just metals but strategic independence. Investors and industry alike will be watching closely.
