ReElement Technologies Announces Progress on Private Patriotic Capital Financing, Commercial Equipment Expansion, and Strategic Outlook Amid China’s Critical Mineral Export Restrictions
Rhea-AI Summary
ReElement Technologies, a subsidiary of American Resources (NASDAQ:AREC), has secured a $150 million pre-money valuation through a U.S.-focused private capital investment round. The financing is structured as a $20 million Convertible Note, with approximately 60% already committed or funded.
The company has commissioned new commercial-scale equipment at its Indiana facilities, including a third chromatography unit and a Bipolar Electrodialysis Unit (BPED). These additions enhance production capabilities and process efficiency for rare earth and critical mineral refining.
The announcement comes amid China's recent export restrictions on critical rare earth minerals, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related materials. ReElement positions itself as the only U.S. company currently separating and purifying heavy rare earth elements under Chinese export control, addressing the bottleneck in global critical mineral supply chain processing.
Positive
- Secured $150 million pre-money valuation with 60% of $20M convertible note already committed
- Successfully commissioned new commercial-scale equipment enhancing production capacity
- Strategic positioning as only U.S. company processing restricted rare earth elements
- Potential for AREC to monetize stake without dilutive financing
Negative
- Dependent on completing remaining 40% of targeted capital raise
- Faces potential price pressure from Chinese competition
- Capital structure complexity with convertible notes and potential stake sale
Insights
ReElement's $150 million pre-money valuation in its private funding round represents a significant milestone that directly impacts AREC's asset value. With approximately 60% of the targeted $20 million convertible note already committed or funded, this capital infusion addresses a critical growth bottleneck without diluting AREC shareholders. The company's engagement of a top-tier investment bank for its next capital raise signals a strategic shift toward potentially monetizing a portion of AREC's stake in ReElement, which could unlock shareholder value while providing growth capital.
China's expanding export restrictions on 16+ critical minerals over the past 24 months creates an exceptional market opportunity for domestic suppliers. ReElement is uniquely positioned as apparently the only U.S. company currently separating and purifying heavy rare earth elements under Chinese export control. The timing of this equipment expansion coincides perfectly with these trade restrictions, potentially accelerating ReElement's revenue trajectory.
The commissioning of a third chromatography unit and the Bipolar Electrodialysis Unit (BPED) represents important operational progress. These technologies improve production scalability while reducing operating costs through chemical recycling and decreased water consumption - crucial advantages in competing on both cost and quality in the critical minerals market dominated by Chinese producers.
Additional Commercial-Scale Equipment Procured for Noblesville, IN and Marion, IN Facilities
Immediate Export Restrictions on Critical Minerals by China Accelerate Commercial Tailwinds and Growth Opportunities for heavy rare earth and defense minerals
FISHERS, IN / ACCESS Newswire / April 14, 2025 / American Resources Corporation (NASDAQ:AREC) ("American Resources") through its holding in ReElement Technologies Corporation ("ReElement" or the "Company"), a leading provider of high-performance refining capacity for rare earth, critical defense and battery elements, today announced the successful closing of additional patriotic capital in its private fundraising round. The funds will support the procurement and commissioning of new commercial-scale equipment. In light of China's recent export restrictions on critical rare earth elements, the Company also reaffirms readiness to supply domestically produced, ultra-pure critical mineral refined products to meet national and international demand.
Mark Jensen, CEO of American Resources Corporation and ReElement Technologies Corporation commented, "The proven capabilities and scalability of ReElement's proprietary, innovative multi-mineral refining platform have accelerated additional capital closings in this fundraising round, as we remain focused exclusively on domestic, patriotic-based funding sources for this round of capital. We've been laser-focused on securing expansion capital from strategic partners who understand the critical importance of building a resilient, U.S.-based supply chain for essential minerals tied to national security. This capital, along with the equipment being procured, will also help reduce the cost of capital associated with our ongoing bond financings for the ReElement Indiana facilities. In addition, we've recently engaged a top-tier investment bank to support our next capital raise, which, depending on valuation, may involve American Resources monetizing a portion of its remaining stake in ReElement. This would allow us to accelerate revenue and profit growth at American Resources without resorting to dilutive capital."
Key Terms of ReElement Private Capital Raise:
Structured as a
$20 million Convertible Note, with flexibility to adjust the amount slightly to facilitate a timely close
Approximately
Pre-money valuation of ReElement set at
$150 million Significant management, board members, and strategic investor participation
Proceeds allocated for procurement of commercial-scale equipment at Indiana facilities, continued new product development and ramp up of production of rare earth oxides and antimony trisulfide / oxide
Commercial-Scale Equipment Commissioning
ReElement currently operates three distinct chromatography equipment lines at its Commercial Qualification Facility in Noblesville, Indiana excluding its lab equipment. The versatility of these systems enables both dedicated customer production and the execution of high-profile R&D initiatives.
Among the recently commissioned commercial equipment includes a third chromatography unit that operates in continuous format that enables the scale up of production as well as expedited development of additional product flow sheets within its Noblesville, IN facility. The second key component was the commissioning of its Bipolar Electrodialysis Unit (BPED) that is particularly critical for optimizing process scalability, recycling of chemicals from the process for reuse, and further reducing operating costs and enhancing overall system efficiency.
Key Attributes of the Bipolar Electrodialysis (BPED) Unit:
Supplier: Provided by the U.S. division of a European company, enabling seamless onsite commissioning and performance optimization
Primary Functions:
Efficient production of lithium hydroxide and lithium carbonate
Reduction of sodium sulfate and chloride waste streams from both lithium and rare earth element (REE) operations, while reclaiming valuable chemicals for reuse
Development Role: Serves as a pilot-scale testing platform to optimize the process flowsheet prior to full-scale implementation at the Marion facility
Sustainability Impact: Reduces overall water consumption by reclaiming water as part of the reagent recovery process
Trade Restriction Tailwinds
As reported by multiple sources, on April 3, 2025, the People's Republic of China (PRC) imposed new export restrictions on several additional critical rare earth minerals, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related materials. Over the past 24 months, China has placed export controls on more than 16 critical minerals, along with several key downstream processing technologies.
Previously, in December 2024, the PRC banned the export of gallium, germanium, and antimony, creating new commercial opportunities for domestic suppliers and processors.
Mark Jensen, CEO of ReElement Technologies continued, "China's decision to implement additional export controls underscores the critical importance of establishing a secure and independent rare earth supply chain in America. ReElement is positioned as the only company in the U.S. currently separating and purifying heavy rare earth elements including multiple minerals under Chinese export control. ReElement is at the forefront of addressing the largest bottleneck in the global critical mineral supply chain - cost-competitive and sustainable midstream processing and refining. Not only can ReElement produce ultra-pure rare earth oxides and other critical defense minerals, but it does so today at a cost, and with the ability to scale and compete head-to-head against the current monopoly in the critical mineral supply chain. Its innovative multi-mineral refining platform technology is designed to compete on both quality and cost. If China drop prices to pressure domestic production, ReElement is positioned to respond accordingly."
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 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.
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.
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 pre-money valuation of ReElement Technologies in the recent private capital raise?
How much is ReElement Technologies' convertible note offering, and how much has been funded?
What new equipment has ReElement Technologies commissioned at its Indiana facilities?
Which rare earth elements did China restrict for export in April 2025?
How will AREC benefit from ReElement Technologies' capital raise?
