Gallium Recovery Innovation and U.S. Defense Demand: A Strategic Opportunity for Metallium and Ares Strategic Mining

The U.S. defense sector’s reliance on gallium—a critical mineral essential for semiconductors, radar systems, and next-generation electronics—has become a national security priority. With China controlling 98% of global gallium production and imposing export restrictions since 2024, the U.S. faces a stark vulnerability [1]. This crisis has catalyzed a surge in domestic innovation, with companies like Ares Strategic Mining and Metallium Ltd emerging as pivotal players in securing U.S. supply chains through cutting-edge gallium recovery and recycling technologies.

The Gallium Gap and U.S. Defense Imperatives

Gallium’s role in defense systems is irreplaceable. Over 11,000 parts across the U.S. Department of Defense depend on gallium-based semiconductors, which enable high-frequency communication, laser guidance, and advanced sensor systems [1]. China’s weaponization of its gallium dominance—exacerbated by its 2024 export controls—has forced the U.S. to accelerate domestic production and recycling efforts. The Department of Defense has already allocated $439 million to strengthen rare earth and critical mineral supply chains, while the Interior Department’s 2025 Critical Minerals List ranks gallium among the top 10 minerals with the highest economic and security risk [1].

Ares Strategic Mining: Tapping Domestic Fluorspar for Gallium

Ares Strategic Mining (CSE: ARS) is pioneering a dual approach to address the gallium shortfall. At its Spor Mountain project in Utah, the company has partnered with Iowa State University and the Ames National Laboratory to extract gallium from fluorspar ores using an alkaline process inspired by the Bayer method for aluminum production [2]. This technology, validated by preliminary trials confirming gallium’s presence and recoverability, positions Ares to diversify its output beyond fluorspar into high-value critical minerals [2].

The company’s recent $11 million loan from the Utah State Legislature and Community Impact Board further accelerates production at the Lost Sheep mine, the only fully permitted fluorspar operation in the U.S. [3]. Utah State Senator Jerry Stevenson emphasized that fluorspar and gallium are “vital to national security,” underscoring the state’s commitment to reducing reliance on Chinese supply chains [3]. Ares’ CEO, James Walker, notes that the U.S. has not produced gallium domestically since 1987, making the company’s efforts a cornerstone of the Biden administration’s critical mineral strategy [3].

Metallium’s Recycling Revolution and Defense Partnerships

While Ares focuses on primary extraction, Metallium Ltd (ASX: MTM) is tackling gallium recovery through next-generation recycling. The company’s Flash Joule Heating (FJH) technology—a scalable, low-energy method for extracting metals from waste streams—has secured a Small Business Innovation Research (SBIR) Phase I contract from the U.S. Department of Defense [4]. This partnership aims to recover gallium from LED scrap, a critical step in closing the loop on supply chains and mitigating the risk of Chinese disruption [4].

Metallium’s strategic depth extends beyond technology. The company recently appointed Gregory L. Bowman, a former U.S. defense official, to its advisory board, strengthening ties with the Pentagon and Congress [5]. Additionally, a partnership with Indium Corp—a leader in semiconductor materials—will develop a U.S.-based processing solution using FJH to recover gallium and other critical metals from industrial scrap [5]. These moves align with the Inflation Reduction Act and CHIPS and Science Act, which prioritize domestic recycling and processing infrastructure [4].

Strategic Implications for Investors

The convergence of U.S. policy, defense demand, and technological innovation creates a compelling investment narrative. Ares Strategic Mining’s fluorspar-gallium project and state-backed funding position it as a key supplier for both industrial and defense markets. Meanwhile, Metallium’s SBIR contract and recycling partnerships highlight its role in a circular economy model, which is critical for long-term supply chain resilience.

For investors, the stakes are clear: gallium is a linchpin in the U.S. effort to counter China’s mineral dominance. Companies that bridge the gap between extraction, recycling, and defense applications—like Ares and Metallium—are not just mitigating risk; they are building the infrastructure for a secure, independent future.

Source:
[1] Department of the Interior releases draft 2025 List of Critical Minerals [https://www.doi.gov/pressreleases/department-interior-releases-draft-2025-list-critical-minerals]
[2] Ares Strategic Mining Launches Gallium Recovery Program with Iowa State University and Ames National Laboratory [https://www.thenewswire.com/press-releases/1AXXF1JpM-ares-strategic-mining-launches-gallium-recovery-program-with-iowa-state-university-and-ames-national-laboratory.html]
[3] Ares Strategic Mining Secures Major State Funding of $11.000.000 USD to Accelerate Production Ramp-Up [https://www.aresmining.com/post/ares-strategic-mining-secures-major-state-funding-of-11-000-000-usd-to-accelerate-production-ramp-u]
[4] Pentagon Backs Metallium Ltd Gallium Supply Chain ... [https://discoveryalert.com.au/news/pentagon-backs-strategic-metals-recovery-technology-2025/]
[5] Metallium (MTM Critical Metals Ltd.) Appoints Defense ... [https://www.easternprogress.com/metallium-mtm-critical-metals-ltd-appoints-defense-advisor-gregory-l-bowman-to-newly-established-advisory/article_061e3a4a-2cd3-5cf3-b264-923ed8d6af1d.html]