DLA Awards $1M SBIR Contract to Metallium for Critical Minerals Recovery

The U.S. Department of War, through the Defense Logistics Agency (DLA), awarded a substantial $1 million Phase II Small Business Innovation Research (SBIR) contract to Flash Metals Texas, a U.S. subsidiary of Metallium Limited, on May 19, 2026. This contract marks a significant development in the ongoing efforts to secure critical mineral resources necessary for the nation’s defense and semiconductor industries. The primary goal of this 12-month project is to advance the recovery processes of gallium and germanium from electronic waste streams using Metallium’s proprietary Flash Joule Heating technology. This technology aims to take the work, which previously existed only at a pilot scale, to fully developed operational levels.

This contract comes at a critical moment when the U.S. faces challenges related to the reliability of supply chains for vital minerals. Both gallium and germanium are considered critical materials by the U.S. government, playing essential roles not only in defense systems but also in modern semiconductor manufacturing and communications technologies. Currently, supply chains for these materials are vulnerable, often limited by geopolitical tensions and environmental regulations affecting primary mining. Enhancing domestic recovery capabilities through innovative recycling technologies could lead to a more stable supply chain, enabling the U.S. to reduce reliance on foreign resources while bolstering national security.

The project will evolve based on the successful outcomes of the previous Phase I initiative, where Flash Metals Texas demonstrated the technical feasibility of extracting gallium from semiconductor and electronic waste streams. According to Steve Regiel, President of U.S. Operations for Metallium, the achievement of all technical milestones ahead of schedule validates their technology's potential and aligns with national security priorities. This forward momentum not only positions Flash Metals Texas as a leader in the field of mineral recovery but also establishes a framework for future phases, including a potential Phase III award, which typically involves broader commercialization and deployment efforts.

The implications for government contractors and procurement professionals are numerous and significant. First, the increased focus on innovative recycling and recovery technologies highlights opportunities for companies with expertise in this domain to develop solutions aligned with federal objectives, particularly as national supply chains evolve to become more resilient. Procurement teams looking for prospects in this sector should consider the expanding viability of SBIR contracts as a reliable route for funding innovative projects, particularly those that support environmental sustainability and resource efficiency.

Additionally, the execution of this project within Texas signifies the state's importance as a tech development hub, potentially serving as a launchpad for further innovation in the critical minerals space. The collaboration among local entities, federal agencies, and innovative companies suggests that regional focused initiatives can yield meaningful advancement in domestic defense and technology capabilities.

As this initiative unfolds over the next year, stakeholders will likely monitor the advances made by Flash Metals Texas closely. Such projects represent a strategic intersection of technology, advanced materials, and defense policy, encouraging not only economic growth through innovation but also the enhancement of vital supplies that underpin national security.

• The U.S. Department of War awarded a $1 million Phase II SBIR contract.
• Flash Metals Texas, a subsidiary of Metallium, will focus on recovering gallium and germanium.
• Project aims to improve recovery methods from electronic waste streams using Flash Joule Heating technology.
• Successful completion of Phase I precedes this Phase II award, validating the technology.
• Enhancing domestic recovery capabilities can reduce reliance on foreign critical mineral supplies.
• Gallium and germanium are designated as critical materials essential for defense and semiconductor applications.
• Procurement professionals should look for growing opportunities in innovative recycling technologies.
• The execution location in Texas positions it as a regional hub for defense-related tech advancements.
• The initiative reflects a broader emphasis on securing critical mineral supply chains for national security.