American Resources Corporation’s ReElement Technologies Updates Progress On Marion Super Site For United States’ Largest Combined Rare Earth and Lithium Refining Facility

Rhea-AI Summary

ReElement Technologies, a subsidiary of American Resources (NASDAQ:AREC), has begun developing its Marion, Indiana super site for rare earth and lithium refining. The facility's Phase 1 targets production of 5,000 metric tons of lithium carbonate (99.9%+) and 1,000 metric tons of rare earth oxides (99.5%+), with potential revenue of $150 million based on current market prices.

The 42-acre campus features 425,000 square feet of production space and 250,000 square feet of expansion-ready area. The facility will process both recycled materials and concentrated ores, with infrastructure including rail loadout, 37 truck bays, and utilities already installed. The site aims to reduce U.S. dependence on Chinese refining capacity for critical materials.

Positive

• Phase 1 production capacity represents $150M potential revenue
• Large-scale facility with 425,000 sq ft of production space and 250,000 sq ft expansion area
• On-site rail and truck logistics infrastructure already in place
• Utilities (power, water, natural gas) already installed
• Capability to process both recycled materials and virgin ores

Negative

• Significant capital investment required for equipment and facility development
• Production capacity not yet operational
• Dependent on market prices of rare earth oxides and lithium carbonate

Insights

Market Research Analyst

This facility expansion marks a significant strategic move in the U.S. critical minerals sector. The $150 million potential revenue from Phase 1 operations represents nearly double the company's current market cap of $80 million, highlighting substantial growth potential. The 42-acre Marion super site's initial capacity of 5,000 metric tons of lithium carbonate and 1,000 metric tons of rare earth oxides positions AREC as a key player in domestic critical minerals production.

The facility's strategic location in Indiana's battery belt, combined with rail and truck logistics infrastructure, creates competitive advantages in transportation costs and market access. The IRA compliance feature is particularly valuable, as it qualifies products for government contracts and tax benefits, potentially leading to premium pricing and preferred supplier status.

Supply Chain Analyst

The Marion facility represents a important step in reducing U.S. dependence on Chinese rare earth processing. The ability to process both virgin ores and recycled materials (including black mass from batteries) creates a versatile revenue stream and helps secure domestic supply chains. The co-location strategy with potential industry partners could create significant operational synergies and cost advantages.

The modular expansion capability is particularly noteworthy, allowing for capital-efficient scaling as market demand grows. The facility's proximity to major educational institutions ensures access to skilled workforce, while the integrated approach to battery and magnet supply chains positions AREC well for the growing EV and renewable energy sectors.

Phase 1 targets 5,000 metric tons of lithium carbonate (99.9%+) and 1,000 metric tons of rare earth oxides (99.5%+) with ability to efficiently and modularly scale production

Marion, IN super site will refine both recycled materials as well as concentrated ores for ultra-pure rare earth and critical minerals

FISHERS, IN / ACCESSWIRE / November 5, 2024 / American Resources Corporation's (NASDAQ:AREC) ("American Resources" or the "Company") wholly owned subsidiary, ReElement Technologies Corporation ("ReElement"), a leading provider of high performance refining capacity of rare earth and critical battery elements, today announced that it has installed power, water and natural gas access and has commenced ordering and delivering equipment to its Marion, IN Advanced Technology super site to bring domestic production of both ultra-pure and separated light and heavy rare earth elements as well as critical battery materials (lithium, cobalt and nickel) that are IRA compliant.

ReElement's Marion, Indiana super site will be a first mover in reducing the chokehold that China has on the refining for critical and rare earth elements. ReElement is focused on building out phase 1 operations with the ability and goal of significantly expanding the Marion site beyond its initial production capacity over time. Phase 1 production capacity represents approximately $150 million in revenue potential based on current market prices of high purity rare earth oxides and lithium carbonate equivalent (LCE).

Mark Jensen, Chief Executive Officer American Resources Corporation and ReElement Technologies commented, "Rare earth element refining capacity is desperately needed in the United States not only for commercial purposes but most importantly to protect our country and supply our defense industrial base. We couldn't be more excited to build out this breakthrough refining capacity in Indiana, the heart of the United States, with ability to efficiently expand as the market continues to grow. We have been training our amazing team for our Marion, Indiana facility an our currently operating Noblesville, Indiana site that produces ultra-pure rare earth elements and critical minerals on a daily basis."

Equipment being sourced, ordered or delivered to Marion is initially focused on preprocessing both battery and rare earth materials (ores and recycled content). The Marion, Indiana site will work with the Noblesville, Indiana site to continually expand final refined products between both facilities as the Company continues to scale up equipment and production in Marion to be a fully commercial facility.

The ReElement Technologies Marion Refining Campus will provide for:

• 42 acres with ample areas for operations and future development for both ReElement Technologies and its key industry partners;

• 425,000 square feet of existing production facility space, office, laboratories, and support structures;

• 250,000 square feet of additional foundation-ready space to expand production facilities or structures for further growth;

• The production of rare earth elements with a targeted initial capacity to produce 1,000 metric tons per year of ultra-pure (>99.5%) rare earth oxides sourced from virgin ores and recycled feedstocks, such as magnets found in high-efficiency motors, electric vehicles, wind turbines, power tools, and hard drives, and establishing the largest such producer of heavy rare earth elements outside of China;

• The production of critical battery materials with an initial refining capacity of 50 metric tons per day of lithium-ion battery input material ("black mass") sourced from end-of-life batteries and manufacturing waste, with the ability to process a wide range of lithium-ion battery chemistries including Lithium Iron Phosphate (LFP) and Nickle Manganese Cobalt (NMC);

• An onsite fully integrated domestic solution of the battery and magnet supply chains: The campus is being designed to drive collaboration with battery and magnet industry partners by creating co-located partnerships within the electrified value chain; reducing costs, maximizing productivity, and significantly reducing the carbon footprint of products produced;

• Rail loadout onsite along with 37 truck bays for enhanced transportation logistics, including access to major highways and interstate travel, with a central location to many potential customers within the automobile, battery and magnet industries within the U.S. battery belt; and

• Exceptional community support for ReElement Technologies, along with access to several important educational institutions, such as Indiana Wesleyan University, Ivy Tech Community College, Taylor University and Purdue University which can provide skilled personnel to ReElement Technologies' expanding workforce.

The Marion Campus will scale up to an initially targeted production capacity of 5,000 metric tons of ultra-pure (>99.9%) lithium hydroxide or carbonate per year, and 1,000 metric tons per year of rare earth oxides, with the ability to strategically and efficiently expand production capacity by adding modular production capacity as the market matures.

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

About ReElement Technologies Corporation

ReElement Technologies Corporation, a wholly owned subsidiary of American Resources Corporation (NASDAQ:AREC), is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts to create a low-cost and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Capture-Process-Purify" process chain in conjunction with its licensed intellectual property including 16 patents and technologies and sponsored research partnerships with three leading universities to support the domestic supply chain's growing demand for magnet and battery metals. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.

About American Resources Corporation

American Resources Corporation (NASDAQ:AREC) is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.

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.

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

RedChip Companies Inc.
Robert Foley
1-800-RED-CHIP (733-2447)
Info@redchip.com

Company Contact:

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

SOURCE: American Resources Corporation

View the original press release on accesswire.com

FAQ

What is the production capacity target for ReElement's Marion facility (AREC)?

The facility targets production of 5,000 metric tons of lithium carbonate (99.9%+) and 1,000 metric tons of rare earth oxides (99.5%+) annually in Phase 1.

What is the potential revenue for Phase 1 of AREC's Marion facility?

Phase 1 production capacity represents approximately $150 million in revenue potential based on current market prices.

How large is AREC's ReElement Technologies Marion facility?

The facility spans 42 acres with 425,000 square feet of production space and 250,000 square feet of expansion-ready area.

What types of materials will AREC's Marion facility process?

The facility will process both recycled materials (including battery black mass and magnets) and concentrated ores for rare earth and critical battery elements.