Royalty Management Invests in Rare Earth Refining Technology Development at ReElement

Royalty Management Holding Corporation has entered into a significant agreement to fund intellectual property development at ReElement Technologies Corporation, a company developing advanced methods for refining and separating rare earth elements and critical minerals. This investment targets technologies crucial for defense, commercial, and energy applications, addressing supply chain vulnerabilities created by China's restrictions on these materials. ReElement, described as a key participant in re-domesticating elemental refining capacity within the United States, currently produces high-purity rare earth elements and critical minerals cost-effectively.

Under the agreement, Royalty Management provides capital for ReElement to develop novel refining methods that produce high-purity elements at a fraction of traditional refining costs. This funding has already resulted in five additional patent applications for new elemental refining technologies. The intellectual property remains owned by ReElement, but Royalty Management will receive an ongoing 0.5% royalty on all gross sales of rare earth or other key elements refined using these new patents. Thomas Sauve, Chief Executive Officer of Royalty Management, commented that the cost-competitive nature of these technologies will change how refined elements are produced, noting that funding new intellectual property represents a core tenet of the company's business model.

This announcement follows a September 2024 agreement where Royalty Management funded research around purifying Platinum Metals Group elements from all potential feedstocks, including mined materials and recycled products. That sponsored research represents a paradigm shift in how these metals can be refined from both ores and recycled feedstock, potentially lowering costs and environmental footprints for miners and recyclers. Similar to the current agreement, ReElement will receive royalties from products sold using that newly developed technology.

While ReElement will own and utilize these technologies to expand its refining capabilities, Royalty Management plans to work with the company to deploy this new technology globally at mine sites, offering lower-cost, more environmentally friendly purification technology. This approach allows Royalty Management to provide value-added propositions to its portfolio companies. The company has a similar agreement with Advanced Magnet Lab (https://mitusmagnets.com/), where funding supports research and development of novel, more efficient permanent magnets for specialty and defense applications in exchange for royalties on product sales.

The importance of this development lies in addressing critical supply chain vulnerabilities for materials essential to modern technology and national security. Rare earth elements and critical minerals are fundamental to numerous applications, from consumer electronics to defense systems, yet global supply has been heavily concentrated in China. By developing domestic refining capabilities that are both cost-competitive and environmentally sustainable, this partnership could reduce dependence on foreign sources while creating more resilient supply chains. The environmental benefits of more efficient refining processes, particularly when applied to recycled materials, add another dimension of significance as industries seek to reduce their ecological footprints while meeting growing material demands.