American Resources and ReElement Technologies Commend the Trump's Administration's Commitment to Critical Mineral and Rare Earth Refining

Rhea-AI Summary

American Resources (NASDAQ:AREC) and its portfolio company ReElement Technologies are advancing critical mineral and rare earth refining capabilities in response to the Trump Administration's commitment to strengthening domestic supply chains. ReElement is currently the only U.S. producer capable of economically separating heavy rare earth elements, challenging China's 99.5% control of global refining capacity.

ReElement operates a Commercial Qualification Plant in Noblesville and is expanding production at its Marion Advanced Technology Center in Indiana. The company employs a proprietary chromatography-based purification process that is more efficient and environmentally friendly than traditional methods. Their technology can process various feedstocks including recycled materials, tailings, and virgin ores to produce high-purity (99.5%+) rare earth oxides and battery minerals.

The company has established global feedstock relationships across North America, Africa, South America, and Australia, focusing on materials such as light and heavy rare earth oxides, battery minerals, and critical defense minerals.

Positive

• Only U.S. producer capable of economically separating heavy rare earth elements
• Proprietary technology producing 99.5%+ purity products
• Established global feedstock relationships across multiple continents
• Expanding production capacity at Marion Advanced Technology Center
• More efficient and environmentally friendly process compared to traditional methods

Negative

• Faces dominant competition from China controlling 99.5% of global heavy rare earth oxide refining
• Still in scaling phase of operations
• Dependent on successful execution of expansion plans

Insights

Financial Analyst

The Trump Administration's new focus on critical mineral and rare earth refining has significant implications for American Resources (AREC) and its portfolio company ReElement Technologies. This policy shift directly addresses a important national security concern - China's control of 99.5% of global heavy rare earth oxide refining capacity.

What makes this particularly impactful for AREC is their positioning as one of the few American companies with operational rare earth oxide production capabilities. ReElement is actively producing both heavy and light rare earth oxides at commercial scale in Indiana, placing them at the forefront of domestic supply chain development in a sector receiving increased government attention.

The company's strategic advantage stems from their two-pronged approach: ReElement's proprietary chromatographic refining technology (more cost-effective and environmentally sustainable than traditional methods) combined with American Resources' established global feedstock relationships across four continents. This integration addresses both the technological and supply chain bottlenecks in critical mineral processing.

Their expansion plans target high-value materials essential for defense and advanced technology applications - including light rare earths (Nd, NdPr), heavy rare earths (Dy, Tb), battery minerals (lithium, cobalt, nickel), and antimony compounds. The modular, deployable nature of their refining platform enables both domestic production and international partnerships, creating multiple potential revenue streams.

While the announcement contains no specific contracts or financial projections, the policy alignment significantly enhances AREC's strategic position in a critical growth sector where domestic competition remains Their established commercial production capabilities give them a first-mover advantage as government prioritization of this sector increases.

Strategic Resources Expert

The policy shift toward critical mineral independence represents a potential inflection point for American Resources and ReElement. What's noteworthy isn't merely government recognition of the problem - it's that AREC already has operational refining capacity precisely where policy attention is focusing.

The strategic value lies in ReElement's specific technological capability with heavy rare earth elements (HREEs). While multiple companies claim rare earth processing abilities, ReElement stands out as the only U.S. producer economically refining heavy rare earths - the most valuable and supply-constrained category that includes dysprosium and terbium, essential for permanent magnets in defense systems and advanced electronics.

Their chromatography-based purification technology provides three distinct competitive advantages: 1) adaptability to multiple feedstock sources, 2) significantly lower environmental impact than solvent extraction methods, and 3) modular deployment capability allowing for distributed processing networks rather than centralized facilities.

The company's vertical integration strategy - securing feedstock relationships across multiple geographies while simultaneously developing refining capacity - creates a resilient business model less vulnerable to supply disruptions. Their circular approach incorporating recycled materials (magnets, batteries) alongside virgin ores provides additional supply chain security.

While challenges remain in scaling production to industrial levels, the company's established commercial qualification plant in Noblesville and expanded facility in Marion, Indiana position it to capitalize on what appears to be strengthening policy tailwinds. The emphasis on merit-based solutions suggests a shift toward supporting companies with proven technological capabilities rather than purely theoretical approaches, which favors AREC's established operational status.

The Trump Administration's support on critical mineral and rare earth refining recognizes it as the key bottleneck for our national security and commercial supply chains, paving the way for solutions to thrive

ReElement's advanced refining process and American Resources' feedstock sourcing capabilities empower the U.S. and allied nations to achieve mineral independence

ReElement's versatile, multi-mineral refining platform is the only rare earth oxide producer capable of economically separating and refining heavy rare earth elements in the U.S.

FISHERS, IN / ACCESS Newswire / March 7, 2025 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), along with its portfolio company ReElement Technologies Corporation ("ReElement"), a leading provider of high-performance refining capacity of rare earth and critical minerals, commend the Trump Administration's commitment to advancing critical mineral and rare earth refining. Currently, China controls 99.5% of the global refining capacity for heavy rare earth oxides, which are essential to defense, advanced computing and electrification applications. ReElement Technologies is actively producing both heavy and light rare earth oxides daily at its Noblesville Commercial Qualification Plant in Indiana and is scaling up production capacity at its Marion Advanced Technology Center in Marion, Indiana to further strengthen U.S. mineral independence.

Additionally, American Resources has established multiple global feedstock relationships across resource-rich regions, including North America, Africa, South America and Australia. The Company is actively developing additional strategic collaborations to support both domestic refining through ReElement and localized refining operations worldwide ensuring a resilient and diversified critical mineral supply chain.

Mark Jensen, CEO of American Resources Corporation and ReElement Technologies Corporation commented, "We have seen a significant shift in Washington D.C. toward merit-based solutions for the critical mineral supply chain. The growing recognition of efficient, competitive midstream refining solutions is not only encouraging, it's essential to making the United States self-reliant and a global leader within the critical mineral supply chain. ReElement's proprietary and patented technology is the most scalable, versatile and efficient refining platform that exists today. It also allows us to deploy our technology throughout the world to strengthen long term trade relationships with allied nations and feedstock providers ensuring a stable supply of materials. The next four years will be transformative for our nation in terms of reshoring and expanding domestic manufacturing, while fortifying national security and securing resilient supply chains."

American Resources and ReElement Technologies play a critical role in the critical minerals supply chain, efficiently and expeditiously sourcing feedstock (recycled materials, tailings and virgin ores) to supply essential elements for domestic and strategic industries. Currently, American Resources and ReElement are expanding capacity for:

• Light (Nd, NdPr) and heavy (Dy, Tb) rare earth oxides on a separated basis at a 99.5%+ purity

• Battery minerals (lithium, cobalt, nickel) at a 99.5% to 99.9%+ purity

• Antimony(iii) sulfide and Antimony(iii) oxide at a 99.7%+ purity

• Other critical defense minerals, including zirconium, yttrium, gadolinium, gallum, germanium niobium, tantalum and silicon, which can be sourced, processed, and refined for defense and advance technology applications.

ReElement Technologies is focused on disrupting China's dominance in the critical minerals supply chain, particularly for rare earth elements and battery materials like lithium, through innovative technology and strategic partnerships. Their strategy centers on a modular, scalable, and deployable refining platform that leverages advanced chromatographic separation and purification techniques. Here's a breakdown of their approach:

1. Innovative Technology: ReElement employs a patented chromatography-based purification process to refine rare earth elements (REEs) and critical battery materials such as lithium, nickel, and cobalt. Unlike traditional methods that rely on energy-intensive and environmentally taxing solvent-based processes (often dominated by China), their technology uses resin-based columns to separate and purify feedstock into high-purity technical-grade products-e.g., lithium carbonate/hydroxide and rare earth oxides. This method is adaptable to various input types, including mineral ores, brines, recycled batteries (like LFP black mass), and manufacturing byproducts, offering flexibility and efficiency.

2. Circular Supply Chain: The company emphasizes a circular economy model, processing not just primary mineral sources but also secondary materials like recycled magnets and battery waste. This reduces reliance on new mining, mitigates supply chain vulnerabilities and positioning them as a key player in the defense supply chain and electrified economy.

3. Scalability and Localization: Their modular refining systems are designed to be deployed near resource sites or manufacturing hubs, reducing transportation costs and geopolitical risks tied to centralized processing (e.g., China's near-monopoly on REE refining). This decentralized approach aims to build resilient, domestic supply chains in the U.S. and allied nations, with a goal of making America a leader in lithium and rare earth production by 2025.

4. Strategic Partnerships: ReElement collaborates with industry players, such as American Resources Corporation, to secure feedstock and expand refining capacity. These partnerships bolster their ability to process materials like rare earth oxide shipments and integrate into broader energy and defense supply chains, supporting national security and economic competitiveness.

5. Challenging China's Dominance: By offering a cleaner, more efficient and more cost effective (capex and opex) alternative to China's solvent-heavy processes (which control ~70% of global lithium refining and ~90% of REE processing), ReElement aims to shift market dynamics. Their tech promises lower environmental impact and operational costs, appealing to Western markets seeking to reduce dependence on Chinese supply chains amid rising trade tensions and export restrictions.

In essence, American Resources and ReElement's strategy is about using cutting-edge technology to create a flexible, sustainable, and American-led critical minerals ecosystem, with an ambitious timeline to reshape global supply chains. American Resources and ReElement's vision ties this to broader goals of economic strength and border security, framing it as a patriotic push against foreign reliance.

About American Resources Corporation

American Resources Corporation is a leader in the critical mineral supply chain, developing innovative solutions both upstream and downstream of the refining process. The company and its affiliates focus on the extraction and processing of metallurgical carbon and iron ore, essential ingredients in steelmaking, as well as critical and rare earth minerals for the electrification market and recycled metals.

Leveraging its affiliation and former parent status of ReElement Technologies Corporation, a leading provider of high-performance refining capacity for rare earth and critical battery elements, American Resources is investing in and developing efficient upstream and downstream critical mineral operations. These operations include mining interests in conventional and unconventional sources, recycling, and manufacturing.

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.

About ReElement Technologies Corporation

ReElement Technologies Corporation, a portfolio company of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its multi-mineral, multi-feedstock platform technology focuses on the refining of recycled material from rare earth permanent magnets and lithium-ion batteries, concentrated ores and brines, as well as coal-based waste streams and byproducts to create a cost effective and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Powered by ReElement" process which collaboratively utilizes its exclusively licensed intellectual property within its partners' material processing flow sheets to more efficiently support the global supply chain's growing demand for magnet and battery-grade products. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.

Learn more about ReElement Technologies' process and technology here - Video.

Special Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.

Investor Contact:
JTC Team, LLC
Jenene Thomas
(908) 824 - 0775
arec@jtcir.com

Media Inquiries:
Marjorie Weisskohl
703-587-1532
mweisskohl@allseasonspr.com

Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
investor@americanresourcescorp.com

SOURCE: American Resources Corporation

View the original press release on ACCESS Newswire

FAQ

What unique technology does ReElement Technologies use to process rare earth elements?

ReElement uses a patented chromatography-based purification process that's more efficient and environmentally friendly than traditional solvent-based methods, capable of producing 99.5%+ purity rare earth oxides.

How is AREC challenging China's dominance in rare earth element processing?

AREC's ReElement Technologies is the only U.S. producer economically separating heavy rare earth elements, offering an alternative to China's 99.5% control of global refining capacity.

What materials can ReElement Technologies process at its facilities?

ReElement can process light and heavy rare earth oxides, battery minerals (lithium, cobalt, nickel), antimony compounds, and various defense minerals including zirconium, yttrium, and gallium.

Where are AREC's current rare earth processing facilities located?

AREC operates a Commercial Qualification Plant in Noblesville, Indiana and is expanding production at its Marion Advanced Technology Center in Marion, Indiana.

What global partnerships has AREC established for feedstock sourcing?

AREC has established feedstock relationships across North America, Africa, South America, and Australia to ensure a diverse supply chain for their refining operations.