MTM Critical Metals (ASX:MTM) said its flash joule heating (FJH) technology simplified rare earth extraction (REE) by producing REE-chloride, a more valuable and refined product than traditional REE-sulfates, according to a Wednesday filing with the Australian bourse.

The FJH technology achieved a 93% conversion rate of REEs into high-purity chlorides and a 95% reduction in key impurities in a single step, the filing said.

The FJH process offers substantial economic and environmental benefits, including reduced acid consumption, lower water usage, and simplified downstream refinement, the filing added.

MTM Critical Metals is continuing to optimize its FJH technology and plans to scale up for industrial use, with pilot-scale trials in progress, the company said.

It is also working on a demonstration plant in Texas to showcase the technology's commercial viability and contribute to re-shoring rare earth refining in the US, the company added.

Shares of the company soared 15% in recent Wednesday trade.