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Quantum Monte Carlo simulations reveal an exotic metallic phase with asingle-particle gap but gapless spin and charge excitations and a nonsaturatingresistivity in a two-dimensional SU(2) Falicov-Kimball model. An exact dualitybetween this model and an unconstrained slave-spin theory leads to aclassification of the phase as a fractionalized or orthogonal metal whoselow-energy excitations have different quantum numbers than the originalelectrons. Whereas the fractionalized metal corresponds to the regime ofdisordered slave spins, the regime of ordered slave spins is a Fermi liquid. Ata critical temperature, an Ising phase transition to a spontaneously generatedconstrained slave-spin theory of the Hubbard model is observed.

Fractionalized Metal in a Falicov-Kimball Model