Key facts
- Fast Metals is developing a method to extract critical minerals from red mud, a byproduct of aluminum refining.
- The process utilizes another waste stream to reduce costs and make mineral extraction profitable.
- The startup secured $4.3 million in pre-seed funding, led by New Climate Ventures.
- Fast Metals plans to scale its process and has a contract to treat one ton of red mud weekly.
Fast Metals is pioneering a method to extract valuable critical minerals from red mud, a significant waste byproduct of aluminum refining. The company, co-founded by Sumedh Gostu and Anthony Staley, has developed a chemical process that utilizes another refinery waste stream to make the separation of minerals like titanium, aluminum, and rare earth elements economically viable.
Gostu, who developed much of the process during his doctoral studies, explained that red mud's high iron content has historically made mineral extraction too costly. Fast Metals' approach aims to overcome this barrier, with iron sales covering operational expenses and other extracted minerals contributing to profit. The potential profit margins are substantial, with scandium oxide fetching approximately $750 per kilogram.
The startup recently secured $4.3 million in pre-seed funding, with New Climate Ventures leading the round and participation from Azolla Ventures, Astor Swiss, and Rio Tinto's accelerator, Founders Factory. This funding will support the scaling of Fast Metals' process. The company has also entered into a commercial agreement with mineral processor Metalox to treat one ton of red mud and refinery waste weekly.