Steve Segal: Good. Okay. And then the other question is I know it’s an unnamed domestic manufacturer, but can you talk about like what your agreement kind of entails now without detail — too many details and where you see it going to?
Mark Jensen : Yes, that was — we have numerous partnerships as we speak. I can’t disclose all the names because it is confidential, just given their business where they’re at in the world today. But we take from — on the magnet front, we take power tools in, we take rotors in, we take old motors in from the automotive industry, from the power tool market, from the wind turbine market. And then — so we have — I can’t disclose names other than EDP Renewables who’s been a very great partnership for us. They have a ton of repowers coming through, great business as a whole. Excited that we’re able to disclose that partnership. Some of the other ones, they’re just cautious about disclosing, given their own business interest, nothing with us.
We do a lot of stuff with them. So we’re excited about that. But taking those — our relationship with a lot of the magnet groups are, we take the non-spec rotors in and then we share a portion of the percentage of revenue that we generate out of that or the profit that we generate out of it, I should say. And so that’s — the great thing for us is we’re building a supply chain in a low-cost way for the industry so that the industry cannot rely up — can rely upon us, not China, to get their supplies going forward. But hopefully, here in the nearest term, we should be able to talk a little bit more forthright about who our partners are. I can’t tell big companies that I can release their names. They won’t let me.
Steve Segal: All right. Okay, great. That’s you explained right, always I had things confusing. Okay.
Mark Jensen : Thank you very much. Steve I appreciate too.
Operator: And our next question comes from Kyle Gallagher with Merrill. Please state your question.
Kyle Gallagher: Hey, Mark, you got me?
Mark Jensen : Yes, I got you, Kyle.
Kyle Gallagher: I got to say this seems to me to be an exciting time for you guys. And I feel like in all the times I’ve been listening to your guys’ conference, this is about the most excited I’ve heard your voice in the prepared remarks. So a lot of good things happening here. My question is you had mentioned something about like a company, I think, like Lease Cycle or Li-Cycle, excuse me for butchering the name. And there were some things that you could do, not specifically with them, but a company like that to help build out the industry. Are you thinking on the ReElement side as you build this up, either through like co-locations or different partnerships, would those be like situations where you would be licensing the technology to like a third party to use? Or how are you guys kind of thinking about expanding and growing some of those partnerships?
Mark Jensen : That’s a great question. So we want all the recycling companies in the U.S. to be successful, right? They do one component of the process, we do another component. We do the refining. Li-Cycle is going to build a hydromet plant. It didn’t work out. Glencore, they’re a great financial partner to them, great company. They stepped in and are helping them. Now what we can offer to the whole entire industry is that separation purification refining step within the hydromet. So if they’re producing a leachate, they’re taking the end-of-life batteries and they’re turning it into a concentrated solution. We can then step in and refine that from them. The CapEx is roughly less — it’s less than half and the operating cost is less than half.
So there’s no reason why they wouldn’t want to do that, and we’re starting to get a lot of interest from multiple — I’m not saying we’re working with the Li-Cycle’s. I don’t want to represent that by any means. But we’re getting a lot of interest from a lot of really great partners that need that separation purification step. It will not be a license though. We don’t license our technology. The reason for it is our team every day is innovative. And they’re always developing better, more cost-effective solutions. We’re already the lowest cost in the U.S. Now we want to stay the lowest cost in the U.S. to do that. Bob Galyen told me we need to constantly invest in research. When he joined our Board, it was something he was adamant about. He did it at CATL when he built the company from $0 billion to $185 billion, and he sees our technology is a platform technology, very similar to what CATL was when he joined our company.
And the one thing he said to me was always invest in research. And so we’ve done that with Purdue University as well as within our internal team. And Yi Ding on our team, he is the guy who is phenomenal. I don’t think he sleeps. But what we offer is we offer the ability to partner with companies. We will help refine their materials or separate their materials from the rare earth element side to the lithium or the cobalt or the nickel or the neodymium or the zirconium and provide that separation purification step in their facilities as a partnership-based model. That’s something we offer today. Now on the other front, we also offer a full suite. We will take it all the way through — all the way to a lithium carbonate lithium hydroxide with cobalt sulfate, nickel sulfate, niobium and then the oxides on the rare earth elements.
