American Resources and ReElement Technologies Secure Contract for Multi-Million Dollar Antimony Purification Agreement
Rhea-AI Summary
American Resources (NASDAQ:AREC) and its portfolio company ReElement Technologies have secured a significant antimony purification contract. ReElement has demonstrated successful refinement of antimony ore (stibnite) to purity levels exceeding 99.7% for antimony(III) sulfide.
The two-year tolling agreement involves processing approximately 500 metric tons of stibnite ore monthly, with initial tolling fees and revenues forecasted to exceed $29 million annually. The contract includes automatic extension options and expansion potential based on domestic demand.
This development positions ReElement as one of the few, if not the only, producers of Antimony(III) sulfide in the United States. The timing is particularly significant following China's December 2024 export ban on critical minerals including antimony. The global Antimony(III) oxide market, valued at $852 million in 2023, is projected to grow at 4.9% CAGR through 2034.
Positive
- Secured contract worth $29M+ annual revenue
- Achieved 99.7% purity in antimony refinement
- Positioned as rare US-based antimony producer post-China export ban
- Processing capacity of 500 metric tons monthly with expansion potential
Negative
- Heavy dependence on imported stibnite ore feedstock
- Significant capital investment needed for Marion facility expansion
Insights
American Resources (NASDAQ:AREC) has secured a transformative antimony purification contract that could fundamentally alter the company's financial trajectory and strategic importance. The
This contract positions AREC and ReElement at a critical intersection of national security and supply chain resilience. Following China's December 2024 export ban on antimony and other critical minerals, domestic refinement capabilities have become strategically vital. The timing couldn't be more opportune - AREC appears to be stepping into an immediate supply gap with few if any domestic competitors, potentially commanding premium pricing in a supply-constrained market.
The technical achievement is significant - ReElement has demonstrated antimony purification exceeding
Three key investment considerations emerge:
- Margin potential: While revenue projections are substantial, refining margins will determine actual profitability. The unique market position suggests strong pricing power.
- Scaling economics: The ability to expand beyond initial volumes without proportional capital investment could create significant operating leverage.
- Strategic value: Beyond direct revenues, this positions AREC for potential defense contracts, government subsidies, and strategic partnerships that could further accelerate growth.
This development substantially de-risks AREC's business model by diversifying beyond its traditional resource operations into higher-margin, strategic material processing with national security implications. Successful execution could trigger a significant revaluation as the market recognizes both the immediate revenue potential and longer-term strategic positioning.
ReElement's antimony purification breakthrough represents a rare convergence of national security imperative and commercial opportunity following China's strategic export ban. This capability addresses a critical vulnerability in the defense industrial base that has been exposed by recent geopolitical tensions.
The defense implications are substantial. Antimony compounds are essential in munitions manufacturing, with no viable substitutes for many applications. The Department of Defense typically requires approximately 400-600 metric tons of antimony annually for various applications, meaning ReElement's initial 500-ton monthly capacity could potentially satisfy the entire U.S. military requirement while also serving commercial markets. This positions AREC to potentially secure designation under the Defense Production Act, which would provide access to capital, expedited permitting, and potential minimum purchase guarantees.
The economic viability question is crucial. Historically, domestic antimony production couldn't compete with Chinese suppliers on cost. However, three factors have changed this calculation:
- Supply disruption premium: With Chinese exports restricted, market prices have increased substantially, improving refining economics
- Technological advantage: ReElement's proprietary process appears to achieve higher yields and purity with lower energy inputs than traditional methods
- Strategic sourcing: Defense contractors and government agencies are now willing to pay premiums for secure supply chains
The commercial market applications extend beyond defense to flame retardants (the largest antimony market segment), lead-acid batteries, and semiconductor manufacturing. These diverse applications provide multiple revenue streams and reduce dependency on defense budgets.
The capability to process antimony establishes a template for addressing other critical mineral vulnerabilities. ReElement's mention of germanium and yttrium processing capabilities suggests a strategic roadmap to become the domestic refiner of choice for multiple China-restricted elements, potentially multiplying the revenue opportunity beyond this initial contract.
ReElement has successfully demonstrated its ability to refine antimony ore (stibnite), achieving purity levels exceeding
The tolling agreement will commence with initial shipments of approximately 500 metric tons of stibnite ore per month to American Resources, with anticipated expansion
FISHERS, IN / ACCESS Newswire / February 27, 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 battery elements, is pleased to announce that the Company and ReElement have entered into a antimony stibnite tolling agreement for the production of ultra-pure Antimony(iii) sulfide or Antimony(iii) oxide from shipments of stibnite ore shipped to ReElement's central Indiana facilities. The purified antimony will be used to supply the domestic defense and commercial industries based on the two-year contract that automatically extends thereafter. Initial tolling fees and revenues from these initial volumes are forecasted to exceed
ReElement has recently completed a successful pilot refining program of the antimony stibnite ore feedstock at its Noblesville, Indiana facility with positive yield and purity of at least
Mark Jensen, CEO of American Resources Corporation and ReElement Technologies Corporation commented, "ReElement is a midstream refiner and purifier of separate elements, showcasing the versatility, flexibility and scalability of our world-class refining capabilities. We have established ourselves as one of the only commercially viable refiners of dysprosium oxide (a heavy rare earth) in the United States, and now we have proven our leadership as one of the very few, if not the only, producers of Antimony(iii) sulfide. This critical material is essential for munitions manufacturing and other specialized applications in both defense and commercial markets. Various private and public sector stakeholders approached us to evaluate whether our propriety and patented refinement process at ReElement could successfully and efficiently process and purify antimony. Over the past few weeks, we have proven that not only can we produce high-purity antimony for industry and government use, but we can do so economically within the United States."
Mark Jensen added, "There is no shortage of critical mineral feedstocks globally, but there is a significant lack of economically viable refining capacity to convert these feedstocks into usable, high-purity products. At ReElement, our team has dedicated over three years developing specialized flowsheets for refining high-valued elements while also cultivating strong partnerships with feedstock providers to ensure a reliable and responsive supply chain. Recently ReElement has begun receiving and testing samples for Germanium, Yttrium, and other defense-critical elements that are increasingly being restricted or banned by China. We are confident in our ability to bring this capability back at scale to the United States."
Antimony(III) oxide and Antimony(III) sulfide are the most commercially significant compounds of antimony and are found in various ore bodies. In 2023, the global Antimony(III) oxide market was valued at approximately
On December 3rd, 2024 China announced a ban on exports of the critical minerals such as Gallium, Germanium and Antimony to the United States, following export restrictions on antimony in September, 2024. These critical minerals have widespread roles in military applications, and the ban further escalated trade tensions just a day after Washington D.C.'s latest crackdown on China's semiconductor sector.
The antimony ore partnership is initially commencing at approximately 500 metric tons per month of stibnite ore for processing and refinement at ReElement, with the ability to significantly expand such volumes based on market demand.
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 is the value of AREC's new antimony purification contract?
What purity level has ReElement achieved for antimony processing?
How much stibnite ore will AREC process monthly under the new contract?
How does China's export ban affect AREC's antimony business?
What is the market outlook for Antimony(III) oxide through 2034?
