In the current version of xcom files Terramite has very little purpose. You can research 1 to get M.A.G.M.A power suits, but the rest can be autosold. Would it make sense to add a manufacuring process to convert terramite into alien alloys? It would give terramite a use, and allow for more liberal construction of things like tritanium ammo, which are very limited early.
It's already a subtype of alien alloys, so I imagine it wouldn't be that difficult to convert it over, especially if the endgoal is to turn it into a bullet.