ReElement Technologies Expands Production to Process Heavy Rare Earth Elements From SEG+ Ore
Rhea-AI Summary
ReElement Technologies, a subsidiary of American Resources (NASDAQ:AREC), announced successful scale-up of SEG+ ore concentrate refining from lab-scale to demonstration-scale, increasing capacity by 50 times. The company efficiently produces magnet-grade (99.5%+) dysprosium (Dy) and terbium (Tb) for defense and commercial permanent magnets.
The company utilizes Ligand Assisted Displacement (LAD) Chromatography technology for separation and purification, offering a cost-effective and environmentally safe method. ReElement has begun installing equipment in their 400,000-square-foot commercial facility in Marion, Indiana.
The LAD technology provides key advantages including: aqueous chemistry eliminating toxic solvents, lower capital expenditures, high versatility across feedstocks, modular scalability, and localized processing capabilities. ReElement positions itself to compete against the current global monopoly in critical mineral supply chain, with ability to adjust costs if China attempts to pressure domestic production.
Positive
- Successfully scaled production 50x from lab to demonstration-scale
- Achieves high-purity (99.5%+) rare earth oxide production
- Cost-competitive technology enables pricing flexibility against competitors
- 400,000 sq ft commercial facility ready with infrastructure in place
- Environmentally safer process using LAD technology versus traditional methods
Negative
- Commercial facility still in equipment installation phase
- Faces potential pricing pressure from established Chinese competitors
Insights
ReElement's successful 50x scale-up in processing SEG+ ore concentrate represents a significant technological milestone in rare earth element (REE) refining. The transition from lab-scale to demonstration-scale processing for producing high-purity dysprosium and terbium has strategic implications beyond the immediate technical achievement.
The critical importance of this development stems from these heavy rare earths being essential components in permanent magnets used in defense systems and commercial applications like electric vehicles and wind turbines. With China controlling approximately 85% of global rare earth processing, ReElement's progress addresses a critical national security vulnerability in U.S. supply chains.
Their Ligand Assisted Displacement (LAD) chromatographic separation technology offers potential advantages over traditional solvent extraction methods through reduced environmental impact and lower capital requirements. While the demonstration scale still precedes full commercial production, the installation of equipment at their 400,000-square-foot Marion facility indicates tangible progress toward industrial-scale operations.
What truly differentiates this announcement is ReElement's claim of cost-competitiveness with Chinese producers – historically considered impossible due to China's decades of expertise, scale advantages, and less stringent environmental regulations. If validated at commercial scale, this would represent a paradigm shift in global rare earth economics.
The modular, scalable approach mentioned could accelerate capacity expansion compared to traditional refineries, potentially allowing faster response to market opportunities as demand for these critical minerals continues to grow in defense and clean energy sectors.
ReElement's progress in refining heavy rare earth elements from SEG+ ore addresses a critical vulnerability in the U.S. defense industrial base. The successful production of high-purity dysprosium and terbium – two elements crucial for specialized defense applications – represents an important step toward supply chain security.
These elements are essential components in neodymium-iron-boron permanent magnets that power precision-guided munitions, radar systems, and various defense electronics. The Defense Department has repeatedly identified the near-total dependence on Chinese processing as a significant security risk, making domestic capabilities like ReElement's strategically valuable beyond their commercial potential.
The company's explicit mention of collaboration with the Defense Industrial Base signals potential pathways to defense contracts – though qualification processes for defense-grade materials are rigorous and time-consuming. Their achievement of 99.5%+ purity meets the threshold requirements for defense applications, but consistent production at scale will be necessary for full qualification.
The modular nature of ReElement's technology could provide tactical advantages in scaling production to meet defense needs, particularly important as military systems increasingly rely on these materials. Unlike commodity metals, specialty elements like dysprosium have no effective substitutes in many defense applications, making secured supply chains imperative.
While full commercialization remains the next challenge, this demonstration-scale validation represents meaningful progress in addressing what the Pentagon and National Defense Strategy have identified as a critical supply chain vulnerability for national security.
SEG+ contains valuable heavy rare earth elements, including dysprosium (Dy) and terbium (Tb), which ReElement successfully recovers and refines for defense and commercial permanent magnets applications
ReElement rapidly scaled production capacity from lab-scale to demonstration-scale for commercial qualification, achieving greater production efficiencies
FISHERS, IN / ACCESS Newswire / March 21, 2025 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), through its holding in ReElement Technologies Corporation ("ReElement"), a leading provider of high-performance refining capacity for rare earth, critical defense and battery elements, today announced the successfully scale-up of SEG+ ore concentrate refining. ReElement transitioned from lab-scale to demonstration-scale processing, a scale up of 50 times capacity, achieving commercial qualification to meet growing customer demand for ultra-pure heavy rare earth oxides. SEG+ ore concentrate contains valuable heavy rare earth elements, and ReElement efficiently validated the SEG+ sample material to produce magnet-grade (
ReElement Technologies 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 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.
Mark Jensen, CEO of ReElement Technologies added, "Today is a great day to be a low-cost refiner of rare earth and critical minerals in the United States. With just one day's notice, our team successfully scaled up production capacity of SEG+ heavy rare earth concentrate 50 times the volume capacity, from lab-scale to demonstration-scale, validating commercial-scale refining operations while also achieving better operating results of separated and purified Dy and Tb for defense and commercial related permanent magnets. Additionally, we have begun installing equipment in our 400,000-square-foot commercial-scale facility in Marion, Indiana, where all necessary infrastructure is in place and ready for operations. The modular scalability of our technology, combined with the techno-economic validation we've achieved across various critical mineral feedstocks, enable us to rapidly expand production capacity faster and more efficiently than any other refining platform, positioning us to challenge the current global monopoly that exists in the rare earth supply chain. ReElement Technologies is unlocking the ability to bring mineral production back to the United States. We are excited to collaborate with the Defense Industrial Base and the commercial markets to supply refined heavy rare earths, light rare earths and other critical minerals that are essential for our national security, reshoring domestic manufacturing and advancing global technology leadership."
SEG+ is a material produced by rare earths mines and refers to a concentrated form of heavy rare earth elements, specifically a combination of samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), and dysprosium(Dy).
Ligand Assisted Displacement ("LAD") Chromatographic Separation and Purification
The use of LAD chromatography to separate, purify and refine rare earth and critical elements is the most cost effective and environmentally safe methods available today. Specifically designed for rare earth element extraction and purification, LAD chromatography offers a cleaner and greener purification process compared to conventional solvent-based extraction methods. It provides superior yield, productivity, flexibility and efficiency enabling smaller and scalable processing volume without the harsh or toxic chemicals.
This advanced separation and purification technology offers key benefits, including:
Aqueous Chemistry - Eliminates the need for toxic and hazardous organic solvents, making the process safer and more environmentally friendly.
Lower Capital Expenditures - A few chromatography units can replace hundreds or even thousands of mixer-settlers to achieve the same throughput and product requirements.
High Versatility - An intrinsic-parameter-based design and predictive simulation tools allow for rapid, adaptable refining across various feedstocks and production scales.
Modular and Scalable Capacity - Easily expands processing volumes in alignment with growing feedstock availability.
Localized Processing - Reduces the need for raw ore transportation across the globe, strengthening supply chain security and efficiency.
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 (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
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 significance of ReElement's SEG+ processing scale-up for AREC investors?
How does ReElement's LAD technology differentiate from traditional rare earth processing methods?
What rare earth elements does ReElement process from SEG+ ore?
Where is ReElement's new commercial-scale facility located and what is its capacity?
How is ReElement positioned against Chinese competition in rare earth processing?
