More than 3 billion tons of red mud, the caustic byproduct of aluminum refining, sit in open-air ponds and mounds around the world. Most industries view it as a costly environmental liability. Fast Metals, a startup backed by $4.3 million in pre-seed funding, sees it as a rich ore deposit waiting for the right chemistry. Main Developments Fast Metals has developed a six-step chemical process that separates valuable minerals from red mud. The key insight came when co-founders Sumedh Gostu and Anthony Staley realized they could use another waste stream from alumina refineries to make the entire process economical. "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 told TechCrunch. The startup applies this second waste stream along with other chemicals to red mud, causing different minerals to precipitate out at each step. Read also: Cyera Buys Oasis Security for $1B to Protect AI Agents The economics hinge on iron oxide, the most abundant compound in red mud, which gives the waste its signature red color. "Iron pays for the opex, and the other stuff is profit," Gostu explained. The profit potential comes from high-value critical minerals like titanium dioxide, which sells for $2.50 to $3 per kilogram, and scandium oxide, which commands about $750 per kilogram. Background Red mud has been a persistent environmental challenge for the aluminum industry. The waste product contains not only iron but also titanium, aluminum, and rare earth elements. Despite this mineral wealth, the byproduct has been largely ignored because separating those minerals from iron oxide has been too expensive, according to Gostu. Gostu designed most of the chemical process during his doctoral studies at the Colorado School of Mines. The missing piece came during a conversation with Staley, when they realized the second waste stream could make the economics work. Fast Metals recently closed a $4.3 million pre-seed round led by New Climate Ventures, with participation from Azolla Ventures, Astor Swiss, and Rio Tinto's accelerator, Founders Factory. Why It Matters The vast stockpiles of red mud represent both an environmental hazard and a missed economic opportunity. If Fast Metals' process scales successfully, it could turn a global liability into a domestic source of critical minerals that the U.S. and other countries currently import. The startup's approach of treating waste with waste also avoids creating new environmental problems while extracting valuable materials. Titanium and scandium are essential for aerospace, defense, and clean energy technologies. Scandium, in particular, is used in solid oxide fuel cells and high-performance aluminum alloys. Extracting these from existing waste streams could reduce dependence on foreign supply chains while cleaning up industrial sites. What's Next Fast Metals plans to use the fresh funding to scale up its process. The startup has secured a commercial contract with Metalox, a mineral processor, to treat one ton of red mud and refinery waste per week later this year. That pilot will test whether the chemistry works at industrial scale and whether the economics hold as volumes increase.