Advanced Magnet Lab Secures $2 Million Defense Grant for Domestic Magnet Production
Royalty Management Holding Corporation's portfolio company, Advanced Magnet Lab, received a $2 million grant from the Defense Logistics Agency to produce high-grade permanent magnets for defense use, reducing reliance on Chinese technology.
Royalty Management Holding Corporation (Nasdaq: RMCO) announced that its portfolio holding, Advanced Magnet Lab (AML), has been awarded a $2 million grant and contract from the U.S. Defense Logistics Agency (DLA) to produce domestically made, high-grade sintered NdFeB (Neodymium Iron Boron) permanent magnets for defense applications. The contract is intended to enable AML to manufacture consistent, fully traceable patented magnets for the U.S. defense supply chain, addressing critical supply chain vulnerabilities.
AML is developing innovative magnet technologies, including its PM-Uniform and PM-Axial magnets, which are wire-like configurations that improve thermal efficiency and power density in motors. These advancements dramatically increase the efficiency of permanent magnets, offering superior performance compared to traditional Chinese technologies that the U.S. commercial and defense industries currently rely on. The DLA award also includes a two-year contract for supply chain management, alloying, and permanent magnet manufacturing, with a focus on optimizing alloy composition for various magnet grades using advanced manufacturing techniques.
Thomas Sauve, CEO of Royalty Management, commented, “AML has consistently demonstrated that their technologies for magnet production are superior to the current paradigm of available options. With their technologies around permanent magnet production, we will see a new, more efficient use of how these magnets are used in specialty motors and high application systems. With this grant, we are pleased to see that the United States government has recognized the strategic and commercial value that AML brings to the market.”
The grant underscores the U.S. government's push to reduce dependence on Chinese magnet supplies, which dominate the global market. AML's novel innovations use less intrusive environmental methods and consume less energy while providing greater manufacturing efficiency and superior performance. This development is significant for national security, as permanent magnets are critical components in defense systems, including motors, generators, and other high-end applications.
Royalty Management participates in AML's growth through an investment in convertible debt, which funds a sponsored research program. Under this arrangement, RMCO receives a royalty on all sales of products derived from the developed technologies. This model allows Royalty Management to benefit from AML's success while supporting the commercialization of advanced magnet technologies.
The DLA grant and contract position AML to scale production and meet defense needs, potentially reshaping the supply chain for critical magnets. For more information on AML, visit www.mitusmagnets.com. Royalty Management's broader strategy involves acquiring and developing high-value assets across resource-driven and emerging technology industries, as detailed at www.royaltymgmtcorp.com.