Electric Royalties: A Strategic Play in the Critical Minerals Supply Chain Diversification

The global transition to clean energy has intensified demand for critical minerals such as lithium, manganese, graphite, and vanadium-key components in batteries, renewable energy systems, and advanced industrial applications. As nations seek to reduce reliance on China-dominated supply chains, companies positioned to secure and de-risk non-China sources of these materials are gaining strategic relevance. Electric Royalties (TSX: ELECF), a royalty and streaming company focused on critical minerals, has emerged as a compelling player in this space. By leveraging a diversified portfolio of royalties across advanced-stage projects, the company is capitalizing on technical and operational progress at key assets like Graphmada, Battery Hill, and Seymour Lake, while aligning with global supply chain resilience goals.

A Portfolio Designed for Supply Chain Resilience

Electric Royalties' strategy centers on acquiring royalties on projects that address bottlenecks in the critical minerals supply chain. Its holdings span four essential metals:
- Lithium (Seymour Lake, 1.5% Net Smelter Royalty)
- Manganese (Battery Hill, 2.0% Gross Metal Royalty)
- Graphite (Graphmada, 2.5% Net Smelter Royalty)
- Vanadium (Mont Sorcier, 1.0% Gross Metal Royalty)

This diversified approach not only mitigates project-specific risks but also positions the company to benefit from overlapping demand drivers across energy storage, electric vehicles, and grid-scale infrastructure.

Technical and Operational Momentum at Key Projects

Seymour Lake Lithium Project:
The Seymour Lake project, operated by Green Technology Metals, has seen transformative progress in 2025. A 345% increase in lithium resources underscores its potential to become a major North American supplier of lithium hydroxide monihydrate (LHM), a critical input for EV batteries. An updated Preliminary Economic Assessment (PEA) has paved the way for a feasibility study (FS) in 2026, with production potentially commencing by 2027. Notably, Green Technology Metals has partnered with EcoPro Innovation to develop an on-site LHM conversion plant, with pilot testwork already underway. This vertical integration reduces reliance on third-party processing and enhances the project's economic viability.

Battery Hill Manganese Project:
Manganese X Energy Corp.'s Battery Hill project has demonstrated robust technical advancements, including Phase 2 ore-sorting tests that increased mill feed grade by 80%. This improvement extends the mine's life and enhances profitability. Crucially, battery tests using Battery Hill material achieved 70% capacity retention after 4,600 cycles, validating its suitability for high-performance applications. With Eric Sprott's financial backing and a pre-feasibility study underway, the project is well-positioned to meet growing demand for manganese in next-generation batteries.

Graphmada Graphite Mine:
Graphmada, held as a 2.5% NSR, is advancing through a Stage-2 scoping study. As global demand for non-China graphite surges-driven by geopolitical concerns and sustainability mandates-the project's potential to supply high-purity, battery-grade graphite becomes increasingly valuable. Graphite's role in anode production and industrial applications ensures Graphmada's relevance in a diversified supply chain.

Mont Sorcier Vanadium Project:
Electric Royalties' vanadium exposure, via a 1.0% GMR on the Mont Sorcier project, reflects its commitment to redox flow batteries and high-strength steel alloys. Recent metallurgical test results by operator Cerrado Gold Inc. confirmed the feasibility of producing high-purity iron and vanadium products. With a feasibility study slated for Q1 2026 and resource expansion ongoing, the project aligns with Electric Royalties' focus on advanced-stage assets.

Strategic Positioning in a Shifting Landscape

Electric Royalties' approach to de-risking and scaling critical minerals projects is underpinned by three pillars:
1. Partnerships with Proven Operators: Collaborations with companies like Green Technology Metals and Manganese X Energy Corp. ensure technical expertise and capital efficiency.
2. Focus on Non-China Supply Chains: By targeting projects in North America and other regions, Electric Royalties addresses geopolitical risks associated with China's dominance in processing and refining.
3. Scalable Royalty Structures: The company's royalty terms are designed to maximize upside potential as projects advance, without bearing operational risks.

As governments and corporations prioritize supply chain diversification, Electric Royalties' portfolio is uniquely positioned to benefit. For instance, the U.S. Inflation Reduction Act and Canada's Critical Minerals Strategy incentivize domestic production of clean energy materials, creating a favorable regulatory environment for projects like Seymour Lake and Battery Hill.

Conclusion: A High-Conviction Play on Global Demand

Electric Royalties' strategic alignment with critical minerals demand, coupled with tangible progress at its flagship projects, makes it a compelling investment. The company's ability to leverage technical advancements, secure partnerships, and navigate regulatory tailwinds positions it to capitalize on the long-term shift toward energy transition metals. As the world moves to decouple from China-centric supply chains, Electric Royalties stands out as a vehicle for investors seeking exposure to the next phase of the clean energy revolution.