Royalty Management Holding Corporation has entered into a significant agreement with ReElement Technologies Corporation to fund the development of new intellectual property and patents for refining rare earth elements, critical minerals, and other specialty elements. This investment aims to enhance domestic production capabilities for materials crucial to commercial, energy, and defense sectors, addressing supply chain vulnerabilities exacerbated by international access restrictions.
Under the agreement, Royalty Management provides capital for ReElement to develop novel refining methods that produce high-purity elements at a fraction of traditional costs. ReElement has already filed five additional patent applications for these technologies, which are owned by ReElement but funded by Royalty Management. In exchange, Royalty Management will receive a 0.5% royalty on all gross sales of elements refined using the new patents, whether sold by ReElement or its technology licensees. This model represents a strategic shift in funding innovation within resource-driven industries.
The importance of this development lies in its potential to alter the global supply chain for rare earth elements and critical minerals. Currently, China dominates the refining of these materials, creating strategic dependencies for the United States and allied nations. ReElement's technologies offer a viable alternative by enabling cost-effective, high-purity production domestically. As Thomas Sauve, Chief Executive Officer of Royalty Management, noted, the cost-competitive nature of these processes could change how refined elements are produced, supporting broader efforts to re-domesticate refining capacity within the United States.
This agreement follows a similar September 2024 partnership where Royalty Management funded research into purifying Platinum Metals Group elements, including Platinum, Palladium, and Rhodium, from mined and recycled feedstocks. That initiative aims to lower costs and environmental footprints for miners and recyclers. Royalty Management also has an 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 on product sales.
Beyond refining, Royalty Management plans to collaborate with ReElement to deploy these technologies globally at mine sites, offering a lower-cost, environmentally friendly purification alternative. This approach not only expands ReElement's capabilities but also provides a value-added proposition for Royalty Management's portfolio companies. The cumulative impact of these investments could reduce reliance on foreign-sourced critical materials, bolster national security, and promote sustainable practices in resource extraction and recycling, positioning the United States more competitively in high-tech and defense industries.
