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 seeks to bolster domestic production capabilities for materials essential to commercial, energy, and defense sectors, which are currently constrained by supply access limitations from China. Under the terms of the agreement, Royalty Management provides capital to ReElement for creating novel refining methods that yield high-purity elements at substantially reduced costs compared to conventional processes. ReElement has filed five additional patent applications for these technologies, which it retains ownership of. In return for the 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.
Thomas Sauve, Chief Executive Officer of Royalty Management, noted that the partnership aligns with the company's business model of financing new intellectual property to expand its portfolio. He highlighted the potential of ReElement's cost-competitive processes to transform the production of refined elements. This agreement follows a September 2024 deal where Royalty Management funded research into purifying Platinum Metals Group elements, such as Platinum, Palladium, and Rhodium, from mined and recycled feedstocks. That research aims to reduce costs and environmental impacts for miners and recyclers, with Royalty Management also securing royalties from resulting sales. Beyond ReElement, Royalty Management has a similar arrangement with Advanced Magnet Lab, funding research for more efficient permanent magnets used in specialty and defense applications in exchange for royalties.
Royalty Management intends 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 of this announcement are significant, as it addresses pressing supply chain vulnerabilities by promoting domestic innovation and reducing reliance on foreign sources for rare earth elements and critical minerals. By investing in technologies that lower production costs and environmental footprints, the partnership could enhance competitiveness in sectors like renewable energy, electronics, and national defense, potentially stabilizing supply and fostering economic resilience. The focus on intellectual property development and royalty-based returns reflects a strategic approach to fostering innovation while mitigating risks in a volatile market, ultimately contributing to a more secure and sustainable material ecosystem.
