Royalty Management Holding Corporation has entered into a funding agreement with ReElement Technologies Corporation to develop new intellectual property for refining and separating rare earth elements and critical minerals. This investment aims to enhance domestic production capabilities for materials crucial to commercial, energy, and defense sectors, which face supply constraints due to access restrictions from China. The partnership's significance lies in its potential to mitigate geopolitical risks in supply chains by fostering U.S.-based technological solutions for materials essential to modern technologies, from electric vehicles to military systems.
Under the agreement, Royalty Management provides capital for ReElement to create novel refining methods that produce high-purity elements at significantly lower costs than traditional processes. ReElement has filed five additional patent applications for these technologies, which it owns. In exchange for funding, Royalty Management will receive a 0.5% royalty on gross sales of elements refined using the new patents, whether sold by ReElement or its technology licensees. This royalty-based model allows Royalty Management to build a diversified portfolio while supporting innovation in a sector where high costs and environmental concerns have historically hindered domestic production.
Thomas Sauve, Chief Executive Officer of Royalty Management, stated that the partnership aligns with the company's business model of funding new intellectual property to build its portfolio. He emphasized the potential of ReElement's cost-competitive processes to change how refined elements are produced. This agreement follows a September 2024 deal where Royalty Management funded research into purifying Platinum Metals Group elements, including Platinum, Palladium, and Rhodium, from mined and recycled feedstocks. That research aims to lower costs and environmental impacts for miners and recyclers, with Royalty Management also receiving royalties from resulting sales.
Beyond ReElement, Royalty Management has a similar agreement with Advanced Magnet Lab (https://mitusmagnets.com/), funding research for more efficient permanent magnets used in specialty and defense applications in exchange for royalties. Royalty Management plans to collaborate with ReElement to deploy the new refining technologies globally at mine sites, offering a lower-cost, environmentally friendly alternative to traditional methods. This strategy positions Royalty Management to add value for its portfolio companies by supporting technological advancements in critical material supply chains. The implications extend beyond corporate growth, as successful deployment could reduce reliance on imports, lower production costs for U.S. manufacturers, and support national security objectives by securing access to strategically important materials.
