Precious Metals Royalties Are Booming - Are Battery Metals Next?

Why It Matters

The deal signals that royalty financing, long dominated by gold and silver, may soon expand to battery metals, offering a new capital source for the clean‑energy supply chain.

Key Takeaways

• Lunar Royalties secures $670 million silver stream, buying 100% at 10% spot.
• Deal yields roughly $25 million annual cash flow from 500k oz silver.
• Gold and silver royalties attract abundant capital; battery‑metal royalties remain scarce.
• Evolve Royalties’ $32.5 million tin royalty marks rare non‑precious deal.
• AI‑driven copper demand could trigger future royalty financing for battery metals.

Summary

The conversation centered on the rapid expansion of precious‑metal royalty companies, highlighted by Lunar Royalties’ landmark $670 million transaction that gives it a 100 percent silver stream from Lending Gold’s Frutool del Norte mine at roughly ten percent of spot price. The deal translates into about $25 million of annual cash flow and was executed entirely through an equity swap, underscoring how royalty firms can secure sizable assets without raising cash.

Participants noted that gold and silver royalties are currently flush with capital, citing comparable large‑scale financing such as Franco Nevada’s $250 million gold stream. In contrast, royalty activity in battery‑metal sectors remains thin; the only recent non‑precious example was Evolve Royalties’ $32.5 million tin royalty in Namibia. The scarcity reflects volatile pricing, immature supply chains, and shifting battery chemistries that deter investors.

Key anecdotes included the calculation that 500,000 ounces of silver at $55 per ounce yields roughly $25 million, and the observation that AI‑driven demand could lift copper consumption by 50 percent over two decades. Speakers also referenced past financing challenges in lithium and nickel projects, illustrating the risk‑averse stance of capital providers toward newer metals.

The discussion suggests that as demand for battery metals solidifies and supply‑chain risks diminish, royalty structures could become an attractive financing tool beyond precious metals. Investors and miners should watch for emerging royalty deals that could unlock capital for critical‑metal projects, potentially reshaping funding dynamics in the clean‑energy transition.

Original Description

Interview with Brendan Yurik, CEO, Electric Royalties

Our previous interview: https://www.cruxinvestor.com/posts/electric-royalties-ltd-tsxvelec-43-royalties-with-multiple-catalysts-ahead-9474

Recording date: 14th May 2026

The royalty and streaming sector is showing a sharp divide, with precious metals attracting strong investor capital while battery metals companies struggle for attention despite solid fundamentals. Electric Royalties CEO Brendan Yurik highlights this imbalance, noting that lithium prices have risen 80% over the past year—matching gold—while copper trades near record highs. Yet, unlike gold, battery metals have not seen comparable investment flows.

This gap is largely driven by investor familiarity and perceived risk. Gold benefits from its long-standing reputation as a stable store of value, while many critical minerals such as manganese, graphite, and vanadium remain poorly understood. Battery metals also face concerns around price volatility, evolving technologies, and past project failures, including significant cost overruns that have undermined confidence.

However, the sector is maturing. Pricing transparency has improved significantly, supply chains are stabilizing, and technical knowledge has advanced as more projects move into production. Yurik believes these developments will reduce risk and limit extreme price swings seen in earlier years.

A major driver of future demand is the rapid growth of artificial intelligence, which is expected to increase copper consumption by 50% over the next two decades. This adds to existing demand from electric vehicles, renewable energy systems, and grid expansion—creating a strong long-term growth outlook for battery metals that contrasts with gold’s relatively static demand profile.

Electric Royalties positions itself as deeply undervalued, with a market capitalization under $20 million despite a portfolio that could significantly enhance the value of much larger mining companies. As new investors enter the mining sector—initially drawn by gold—there is potential for capital to gradually shift toward critical minerals as understanding improves.

Overall, the battery metals royalty sector appears to be at an inflection point, combining strong demand growth with improving market fundamentals, yet still awaiting broader investor recognition.

Learn more: https://www.cruxinvestor.com/companies/electric-royalties

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