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 currently face supply constraints largely due to access restrictions from China. Under the terms of the agreement, Royalty Management provides capital to ReElement for the creation of novel refining methods designed to produce high-purity elements at significantly lower costs compared to traditional processes.
ReElement Technologies has filed five additional patent applications for these proprietary technologies, which the company retains ownership of. In exchange for its funding, Royalty Management will receive a 0.5% royalty on the gross sales of elements refined using the newly developed patents, applicable whether the elements are sold directly by ReElement or by its technology licensees. Thomas Sauve, Chief Executive Officer of Royalty Management, stated that this partnership aligns with the company's established business model of funding new intellectual property to build its portfolio. He emphasized the transformative potential of ReElement's cost-competitive processes to fundamentally alter how refined critical elements are produced.
This latest agreement follows a similar strategic move by Royalty Management in September 2024, when the company funded research into purifying Platinum Metals Group elements, including Platinum, Palladium, and Rhodium, from both mined and recycled feedstocks. That research initiative also aims to reduce operational costs and environmental impacts for miners and recyclers, with Royalty Management similarly positioned to receive royalties from resulting sales. Beyond its work with ReElement, Royalty Management maintains a comparable agreement with Advanced Magnet Lab (https://mitusmagnets.com/), funding research for more efficient permanent magnets used in specialty and defense applications in exchange for future royalties.
Royalty Management plans to collaborate closely with ReElement to deploy the new refining technologies globally at various mine sites. This deployment strategy is intended to offer a lower-cost, more environmentally friendly alternative to conventional refining methods. By supporting such technological advancements within critical material supply chains, Royalty Management's strategy positions the company to add significant value for its portfolio companies. The broader implication of this investment is its potential to mitigate strategic vulnerabilities in supply chains for materials vital to modern technology, renewable energy infrastructure, and national defense, thereby contributing to greater supply security and economic resilience.
