▼ Summary
– Over 3 billion tons of red mud, a toxic alumina refining waste, is stored in open ponds, but startup Fast Metals sees it as a valuable resource.
– Fast Metals raised a $4.3 million pre-seed round from investors including New Climate Ventures and Rio Tinto’s accelerator.
– Red mud contains iron, titanium, aluminum, and rare earth elements, but separating them from iron oxide has been too costly until now.
– The company’s six-step process uses another refinery waste stream to economically extract minerals, with iron covering operating costs and other minerals generating profit.
– Fast Metals plans to scale its process with a commercial contract to treat one ton of red mud per week later this year.
Aluminum production has generated more than 3 billion tons of red mud globally, a caustic byproduct currently sitting in open-air ponds or mounds. But for Sumedh Gostu, co-founder and CEO of Fast Metals, that waste holds hidden value. “It is a very rich resource,” he told TechCrunch. “If you attack with the right chemistry, it can be very profitable.”
Gostu believes his startup has unlocked that chemistry, and notably, part of the solution comes from another waste stream produced by the same alumina refineries. Fast Metals recently closed a $4.3 million pre-seed round led by New Climate Ventures, with backing from Azolla Ventures, Astor Swiss, and Rio Tinto’s accelerator, Founders Factory.
Red mud gets its vermillion color from rusted iron, which dominates the mixture. But it also contains valuable critical minerals, including titanium, aluminum, and rare earth elements. Despite this mineral wealth, red mud has been largely overlooked because separating those elements from iron oxide has historically been too expensive. “We are removing that impediment,” Gostu said.
Gostu developed most of the extraction process during his doctoral work at the Colorado School of Mines, but one piece remained elusive. Then, during a conversation with co-founder Anthony Staley, the solution clicked. “We were like, ‘oh wait, there’s a waste stream which can make the whole process very economical, and it’s lying right there,’” Gostu recalled.
Fast Metals now applies that waste stream, combined with other chemicals, to red mud through a six-step process. Different minerals precipitate out at each stage, all of which can be sold. “Iron pays for the opex, and the other stuff is profit,” Gostu said.
The profit potential is substantial. Titanium dioxide sells for roughly $2.50 to $3 per kilogram, while scandium oxide commands about $750 per kilogram. With the new funding, Fast Metals plans to scale its operations. The startup has already secured a commercial contract with Metalox, a mineral processor, to treat one ton of red mud and refinery waste per week later this year.
(Source: TechCrunch)