Supra Wins Defense Contract for Scandium Recovery
Austin-born critical minerals firm Supra Elemental Recovery received a Phase I SBIR contract from the U.S. Defense Logistics Agency.
Updated on Nov. 5, 2026 in Startups
Supra Elemental Recovery, a critical mineral separations company formed out of the University of Texas at Austin in 2025, received a Phase I Small Business Innovation Research contract from the U.S. Defense Logistics Agency to advance its scandium recovery technology. The company's statement announcing the contract was issued on 30 September.
Why it matters
The contract supports maturing Supra's scandium technology toward commercial-scale demonstration, a step relevant to supply of metals used in advanced aerospace and energy applications. For Austin's startup ecosystem, it shows university research moving toward defense-related commercialization.
Supra raised a USD2.15 million pre-seed round that closed in December 2025, with Rio Tinto joining as a strategic investor in April 2026. The defense contract's dollar value and performance period were not included in the available information.
The players
Supra Elemental Recovery
A critical mineral separations technology company spun out of the University of Texas at Austin that is developing scandium and gallium recovery methods.
Rio Tinto
A global mining company that joined Supra's funding round as a strategic investor in April 2026.
U.S. Defense Logistics Agency
The federal agency within the Department of Defense that awarded Supra its Phase I SBIR contract for scandium recovery work.
The details
Supra is adapting academic work from the University of Texas at Austin to commercial needs, and it is seeking industrial partners to test recovery of gallium and scandium. The company will evaluate whether its separation platform can be applied to relevant feedstocks in support of potential future scalability.
Timeline
2025: Supra formed out of the University of Texas at Austin.
December 2025: The USD2.15 million pre-seed funding round closed.
April 2026: Rio Tinto joined the funding round as a strategic investor.
30 September 2026: Supra issued a statement announcing the DLA contract.
15 October 2026: Supra CEO Sessler was interviewed by Janes.
Market Dynamics
Supra's Phase I award is one of the early-stage federal grants offered under the Small Business Innovation Research program, which funds small firms to move university research toward defense and commercial use. The award places a University of Texas spinout within that established pathway for federal support of domestic critical mineral supply.
Austin-area founders and investors can see a concrete example of a university spinout securing federal funding and strategic industrial backing before scaling. Supply of critical minerals used in aerospace and energy hardware may shift as demonstration work progresses.
The takeaway
University spinouts that pair federal SBIR funding with early strategic investors can reach pilot-stage work sooner. Watch whether Supra's demonstration partnerships produce the tons-per-year pilots its leadership has described.
Further reading
For more on the regional companies building from university research, see Startups coverage across Austin.
Source note: This article includes information reported by Janes.
