Aluminum may leave behind a crimson legacy, but Sumedh Gostu sees gold in that red mud.

Gostu, co-founder and CEO of Fast Metals, believes they have cracked the code to extract critical minerals from the waste product of alumina refining. The process involves using another waste stream to make the operation economically viable.

The startup has secured a $4.3 million pre-seed round led by New Climate Ventures, with contributions from Azolla Ventures, Astor Swiss and Rio Tinto’s Founders Factory. Red mud, rich in minerals like titanium and rare earth elements, is set to become more profitable as Fast Metals finds ways to separate the valuable components.

“Iron pays for the OpEx, and the other stuff is profit,” Gostu explains. The potential payoff could be substantial, with products like titanium oxide selling at around $3 per kilogram, while scandium oxide fetches up to $750 per kilogram.

With this funding, Fast Metals plans to scale its process and enter commercial contracts, treating one ton of red mud and refinery waste per week later this year. This could mark a significant shift in how we approach resource extraction and recycling.