Rare Earth Exchanges

Korean Giant and American Venture Ink Deal to Over Time Develop Alternative Rare Earth Supply Chain

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Highlights

  • ReElement Technologies and POSCO signed an MOU to integrate innovative magnet recycling and rare earth ore refining processes into a global manufacturing network.
  • The partnership aims to develop a circular supply chain solution.
  • The goal is to reduce dependency on Chinese rare earth sources and support electric vehicle OEM contracts.
  • ReElement’s unique patented technology provides an environmentally safe, cost-effective alternative to traditional rare earth element separation processes.

A wholly owned subsidiary of American Resources Corporation (opens in a new tab) (NASDAQ:AREC) (“American Resources” or the “Company”) called  ReElement Technologies Corporation (opens in a new tab) (“ReElement”), a leading provider of high-performance refining capacity for rare earth and critical battery elements, inked a deal with  POSCO International (opens in a new tab) (“POSCO”), South Korea largest trading company.

The Memorandum of Understanding (MOU) frames a collaboration involving the integration of ReElement’s efficient magnet recycling and rare earth ore refining processes into POSCO’s global rare earth magnet manufacturing network.   In this way existing players in the rare earth element ecosystem outside of China seek to develop more scale.

According to the joint press release (opens in a new tab), ReElement will become the primary North American refiner, supplying POSCO with both heavy and light rare earth elements, supporting POSCO’s permanent magnet vertical as they satisfy the nearly $900MM in announced OEM contracts.

Additionally, ReElement will recycle waste magnets and manufacturing scrap, reintroducing these materials into POSCO’s production process. Together, ReElement and POSCO will also offer a circular supply chain solution for high-value magnet materials to POSCO’s existing and future clients.

Mark Jensen, CEO (opens in a new tab) of ReElement Technologies commented, “We have been collaborating closely with the POSCO team for several months and are excited about the opportunity to address rare earth element supply and sustainability challenges together. POSCO’s extensive expertise and network in the permanent magnet industry and electrified economy enable us to drive efficiencies and implement impactful solutions where they are most needed. This partnership also highlights ReElement’s ability to catalyze and build a robust and sustainable supply chain. Additionally, we are confident that the unique strengths of our platform technology will enhance our capacity to source quality feedstock from around the world to support our current and emerging manufacturing base. Offering POSCO’s North American and European OEM customers a diversified supply chain for rare earth magnets is key to reducing volatility and costs in electric transition.”

What does ReElement do?

As we have reported here at Rare Earth Exchanges, ReElement utilizes its patented technology for the separation and purification of rare earth and critical battery material. A critical activity should Western rare earth supply chains become independent of China.

The Technology

Unlike conventional solvent-based, hydrometallurgical processes that rely on toxic acids and solvents, ReElement maximizes surface area interface by using columns and resins. This innovative application of this longstanding technology significantly reduces CapEx, physical footprint, environmental impact and chemical usage, resulting in lower OpEx for mineral separation, purification and refinement.

The technology was developed over decades, drawing on expertise from commercially operating processes used in industries such as sugar refinement (for fructose and glucose) and pharmaceutical production, including commercial production of insulin.

The Mission: Diversify away from China

ReElement Technologies is dedicated to leading the domestic supply chain for refined rare earth and critical battery elements, addressing both the electrified economy and national security needs. The Company has demonstrated that its patented chromatographic separation and purification technology is a cost effective, scalable, flexible and environmentally safe alternative to the legacy processes, which are both environmentally and socially harmful. As the Company expands and scales production across its own and partner facilities, it will play a key role in reducing U.S. dependence on foreign sources of critical rawmaterials while also fostering a true circular life-cyclesolution.

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