Highlights

• DoD awards $2 million to ReElement Technologies to expand domestic rare earth element refining capabilities.
• The company's patented chromatographic technology can achieve 99.9% to 99.999% mineral purification for defense applications.
• ReElement Technologies aims to reduce US dependence on Chinese rare earth mineral suppliers by creating a scalable domestic refining platform.

The U.S. Department of Defense (DoD) has awarded $2 million to ReElement Technologies (opens in a new tab), a subsidiary of American Resources Corporation (opens in a new tab) (NASDAQ: AREC), to expand domestic refining capacity for rare earth elements (REEs) and other critical minerals. The award, issued through the Industrial Base Analysis and Sustainment (IBAS) program (opens in a new tab) under the Office of the Assistant Secretary of Defense for Industrial Base Policy (opens in a new tab), underscores Washington’s priority to secure midstream refining and purification capabilities for defense applications.

ReElement operates what it calls the nation’s only scalable refining platform capable of economically separating and purifying both light and heavy rare earth elements. See a Rare Earth Exchanges (REEx) interview with CEO Mark Jenson (opens in a new tab).

Its patented chromatographic technology delivers purities between 99.9% and 99.999%, levels essential for advanced defense systems. The company’s42-acre Marion, Indiana campus is positioned to become a central hub for the U.S. defense industrial base, supplying rare earths and other minerals needed for permanent magnets, missile guidance systems, and other mission-critical technologies.

CEO Jensen of ReElement Technologies emphasized the strategic alignment with national security priorities: “We are proud to work with the Department of Defense to deliver innovative refining solutions that strengthen and secure the midstream segment of our domestic supply chain. Our platform is designed to provide the defense industry with a sustainable and cost-competitive source of separated rare earths.”

The announcement arrives at a time of heightened urgency: nearly all heavy rare earth refining remains concentrated in China, leaving U.S. defense contractors reliant on foreign suppliers for mission-critical inputs. By supporting ReElement’s refining expansion, the DoD signals a willingness to bet on modular, domestically anchored technologies as part of its broader industrial resilience strategy.

Questions for Investors

• Can ReElement’s modular chromatographic platform truly scale to meet the volume demands of defense and commercial markets? This is a question we asked CEO Jensen.  He is adamant he’ll scale with funding.
• With only $2 million in DoD funding so far, how much additional capital—federal or private—will be required to build out meaningful capacity?
• Will ReElement’s Indiana facility achieve cost-competitive throughput compared to entrenched Chinese refiners, especially for heavy rare earths like dysprosium and terbium?
• How quickly can this refining campus move from pilot-scale achievements to consistent, industrial-scale production?

©!-- /wp:paragraph -->