EXCLUSIVE: Saudi University KAUST's U.S. Fund Put $4 Million Into American Rare-Earth Refiner, Filing Shows

A Silicon Valley venture firm registered with the Justice Department as a foreign agent of Saudi Arabia's King Abdullah University of Science and Technology (KAUST) put $4 million into a Cincinnati company that refines rare-earth elements, according to a federal filing reviewed by The Digital Free Press.

The investment, a convertible note in Rare Earth Technologies, Inc. dated Aug. 11, 2026, is the largest of six U.S. startup investments totaling $11.15 million that Capital K, LLC listed as disbursements for KAUST between June and August. Capital K reported the investments in a supplemental statement under the Foreign Agents Registration Act (FARA) covering the six months that ended Sept. 30. The statement was signed by managing director Patrick Suel and received by the Justice Department's FARA unit on Oct. 25.

FARA registration is a legal disclosure requirement for people and firms that act for foreign principals. It does not by itself indicate wrongdoing, and nothing in the filing suggests any.

KAUST's $200 million commitment to the fund is not new; Intelligence Online reported on it in May 2025. The Digital Free Press found no news coverage of the 2026 investments, including the rare-earth deal, before publication.

What the KAUST Filing Shows

The filing lists six investments by date: $2.15 million in Neoniq, Inc. (Series A, June 5); $1 million in Phizzle, Inc. (convertible note, June 22); $1 million in ClimateCrete, Inc. (SAFE, July 16); $1 million in Iaterion, Inc. (convertible note, Aug. 5); $4 million in Rare Earth Technologies (convertible note to Series A, Aug. 11); and $2 million in Advanced Cavitation, Inc. (convertible note, Aug. 18).

Rare Earth Technologies does not appear in Capital K's previous six-month report, filed in October 2025, which listed $6.5 million in investments in Advanced Cavitation, Phizzle, ClimateCrete and Neoniq.

Capital K also reported receiving $3,208,332.94 in management fees during the period, paid in three installments by Capital K Investment Fund I, L.P. and described as "originating from KAUST." The filing says the firm's fee equals 2.25% a year of the fund's committed capital, plus a possible discretionary bonus of up to $500,000 a year.

According to the filing, KAUST committed $200 million from its endowment to the fund in 2023 and is "the primary source of funds" for its investments. Capital K says it "is independent of KAUST and has the authority to make its own investment decisions." But it also says the fund's investment guidelines require investments that "contribute towards the advancement of Saudi Arabia's innovation and entrepreneurship ecosystem."

The filing says Capital K works with KAUST to identify possible investments among the university's spin-outs, sometimes receives a board or observer seat at the companies it backs, and reports periodically to KAUST's Investment Committee. Capital K told the Justice Department it engaged in no political activity for KAUST during the period.

KAUST's own website describes Capital K as its "deep tech innovation fund" and says it will invest $200 million "into early-stage technologies from KAUST, KSA or around the world that will contribute to the economic development and job creation ambitions of the Kingdom." The page says the initiative aims "to accelerate the development of a made-in-Saudi high-tech sector."

A U.S. Rare-Earth Refiner

Rare Earth Technologies, known as RETi, describes itself on its website as "a concentrate processor and refiner of Rare-Earth Elements," formed in 2021. The company says it has a proprietary separation system that can reach "up to 99.999%" purity and that "RETi is not currently licensing its process to customers." The site says RETi "will launch its first American-based refining facility in 2025" to handle more than 300 metric tons of material a year. The Digital Free Press could not confirm whether that facility is operating. The website lists Adam Malofsky as chief executive and Steve Levin as president.

In November 2025, Resouro Strategic Metals, a company listed in Australia and Canada, announced a non-binding agreement with RETi to test rare-earth separation on ore from Resouro's project in Brazil.

Rare earths are used in magnets for electric vehicles, electronics and military equipment, and supply is concentrated in China. The International Energy Agency's Global Critical Minerals Outlook 2026 says China, the top refiner of rare earths, "accounts for over 90% of global supply." Washington has made outside sources a priority. In November 2025, MP Materials announced it had partnered with the U.S. Department of War to form a joint venture with Maaden, Saudi Arabia's flagship mining company, to build a rare-earth refinery in Saudi Arabia.

The FARA filing does not say what the $4 million note could convert into, how large a stake it could become, or whether Capital K holds a board or observer seat at RETi.

Who Runs Capital K

Capital K's 2024 registration statement, filed Sept. 5, 2024, says the firm is a Delaware limited liability company based in Portola Valley, California, organized in May 2022, and that Patrick Suel is its managing director and sole member. The registration lists KAUST, in Thuwal, Saudi Arabia, as its only foreign principal.

The Digital Free Press emailed KAUST's media relations office and sent a request for comment to Rare Earth Technologies through its website on Wednesday morning. Neither had responded by publication time. The Digital Free Press could not find a public email address, website or press contact for Capital K. TDFP will update this story with any response.

Hold Everyone Accountable.

Sources: Capital K, LLC FARA supplemental statement for the period ending Sept. 30, 2026 (received Oct. 25, 2026): https://efile.fara.gov/docs/7456-Supplemental-Statement-20261025-4.pdf ; Capital K, LLC FARA supplemental statement for the period ending Sept. 30, 2025: https://efile.fara.gov/docs/7456-Supplemental-Statement-20251027-2.pdf ; Capital K, LLC FARA registration statement (Sept. 5, 2024): https://efile.fara.gov/docs/7456-Registration-Statement-20240905-1.pdf ; Intelligence Online, May 8, 2025: https://www.intelligenceonline.com/middle-east-and-africa/2025/05/08/how-a-saudi-arabian-university-is-quietly-pouring-millions-into-us-tech,110445086-eve ; KAUST, Our Strategy: https://www.kaust.edu.sa/about/our-strategy ; Rare Earth Technologies, Inc.: https://rareearth.tech/ ; Resouro Strategic Metals announcement via InvestorNews, Nov. 13, 2025: https://investornews.com/member_news/resouro-strategic-metals-and-rare-earth-technologies-sign-mou-for-rare-earth-element-extraction-and-processing-collaboration/ ; International Energy Agency, Global Critical Minerals Outlook 2026: https://www.iea.org/reports/global-critical-minerals-outlook-2026 ; MP Materials, Nov. 19, 2025: https://investors.mpmaterials.com/investor-news/news-details/2025/MP-Materials-and-the-U-S--Department-of-War-Partner-with-the-Saudi-Arabian-Mining-Company-Maaden-to-Develop-Rare-Earth-Refinery-Joint-Venture/default.aspx