Potema's Skull and Circlet are necessary reagents for his ultimate plan.
As the Necrolord, his soul contains the fragment of every type of soul you can imagine, in order to further his control over them. This includes dragons, so he is technically Dragonborn. However he is unable to use the same abilites, namely absorbing their knowledge, which means he cannot unlock shouts, and he will be forever considered lower than a Dovahkiin.
To solve this, he plans to find the original Dragonborn, the one who exists to slay Alduin, and rip his soul from his body, then use The Black Star as a conduit for his soul, with Potema's Skull as a catalyst, and use it to enchant Potema's circlet. The end result will be a crown that will grant him the powers of the Dragonborn, and cause all those around him to see him as such.
The Dragonborn's leftover body will be used for his magnum opus.
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