Our Business Plan
Zero-carbon renewable energy and electric mobility will possibly be the biggest disruption this decade.
Medallion firmly believes that meeting demand for critical materials for the energy transition will require more effective and efficient processing technologies, with reduced energy requirements and environmental footprints.
Medallion’s Plan
Our initial focus lies in rare earth elements (REEs).
Our initial focus lies in REEs for which we are building an end-to-end feedstock sourcing, refining, and marketing platform based on our midstream (refining) process technology portfolio for the recovery of rare earth oxides (REOs).
Refined rare earths are required for electric vehicles, most of which will use electric motors incorporating permanent magnets containing REEs for performance and efficiency considerations. Further growth is expected from applications in consumer electronics and increased adoption of wind power.
Forecasts by Wood Mackenzie and ADAMAS Intelligence estimate that the value of the global market for magnetic REOs will increase at a CAGR of +16%, from less than $10 billion in 2021 to more than $75 billion in 2035. For perspective, the global copper market is currently ~$200 billion.
Our Investment Thesis
Disrupting the midstream REE market through innovative separation technology & strategic upstream partnerships.
The forecast growth in electric vehicle sales will result in a structural increase in demand for permanent magnets and fuel growth of the magnetic rare earths market.
Availability and security of supply of critical materials like rare earths must increase if electric vehicles and wind power generation are to thrive. By deploying the LAD Chromatography separation technology, Medallion is best placed to deliver refined rare earths with minimum carbon footprint and the highest degree of sustainability.
Why the Midstream? The confluence of the highest operating margins in the mine-to-magnet value chain, relative lack of competition and a gap in sustainable technology make the Midstream the most attractive entry point in the REE value chain.
The Path To Profitability
Medallion’s business model is designed to create several sources of value.
Our business model is designed to create several sources of value including long-term cash flow from refining operations and near-term capital appreciation by enabling our upstream partners in the valorization of primary and secondary resources for monazite and other REE-rich feedstocks.
Our LAD Chromatography separation technology can process by-product materials, therefore minimizing the impact of raw material supply, enabling Medallion to take the most sustainable path to rare earth production.
With its innovative technology, a clear, focused strategy and a strong leadership, Medallion provides strategic and retail investors with an unparalleled opportunity to gain exposure and capture value from the high-growth magnetic REE market segment.
Our ambition
Unlocking value and securing strategic supply agreements for downstream production facilities.
In the short-term, we plan to deploy our technology with upstream partners to valorise by-product streams and stockpiles (tailings) with the potential to deliver high-margin cash flow from existing assets. We are also working with greenfield projects to enable the development of their assets, unlocking value and securing strategic supply agreements for downstream production facilities.
We are targeting our first REO refining facility with the potential to deliver over $200 million of annual revenue at 2021 REO prices by 2028. At the price level forecast for 2028, annual revenues could exceed $300 million with an estimated average return on invested capital of 35-40%.
Our medium-term ambition is to establish two further refining facilities of similar or larger capacity by 2032, effectively tripling Medallion’s refining output and delivering annual revenues between $700 million and $900 million. For reference, the projected 2032 output from MDL’s refining facilities would only equate to 5% of the forecast growth in demand for magnetic REOs.
-
Our Vision & Mission
Ensuring the availability and security of supply of critical materials, a new strategic resource for a carbon-neutral world.
-
Our Core Technology
LAD chromatography, co-developed with Purdue University, is our platform technology for the separation of rare earth oxides and other critical materials.
-
About Us
Find out more about the people behind the company, and what it is about us that makes Medallion work the way it does.
