Highlights
- American Resources’ subsidiary: ReElement Technologies
- Location: Developing a 42-acre refining campus in Marion, Indiana
- Focus: Rare earth and critical battery elements
- Phase 1 Program Targets:
- 5,000 metric tons of lithium carbonate annually
- 1,000 metric tons of rare earth oxides annually
- Potential Revenue: $150 million
- Project Goals:
- Reduce China’s dominance in rare earth refining
- Support the U.S. defense industrial base
A Phase 1 mining program targeting 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. The Marion, Indiana super site will refine both recycled materials as well as concentrated ores for ultra-pure rare earth and critical minerals.
This was announced by American Resources Corporation's (NASDAQ:AREC (opens in a new tab)) ("American Resources" or the "Company") wholly owned subsidiary, ReElement Technologies Corporation (opens in a new tab) ("ReElement"), a leading provider of high performance refining capacity of rare earth and critical battery elements. AREC has a stock price of 1.0100 with a market capitalization of $78.19 million. With a projected loss of $19 million the company does not have a large cash position at $554.42K. Vanguard is the largest institutional shareholder with 16.32% ownership of outstanding stock.
The company announced 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 according to the firm’s press release (opens in a new tab).
Reducing China Chokehold?
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.
What is the economic potential according to the company?
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).
Why is this an important project? The refining of rare earths
The potential importance of this project was summarized the company’s Chief Executive Officer Mark Jensen, “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 and 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.
Summary of Marion Refining Capus
The ReElement Technologies Marion Refining Campus will provide for:
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42 acres with ample areas for operations and future development for both ReElement Technologies and its key industry partners.
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425,000 square feet of existing production facility space, office, laboratories, and support structures.
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250,000 square feet of additional foundation-ready space to expand production facilities or structures for further growth.
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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.
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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).
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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.
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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
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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.
About ReElement Technologies Corporation
ReElement Technologies Corporation, a wholly owned subsidiary of American Resources Corporation (opens in a new tab) (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.
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 can maximize margins while reducing costs.
The company stock as of November 6, 2024, before market opening is 1.0100 with a market capitalization of $78.19 million. With a loss of $19 million the company does not have a large cash position at $554.42K. Vanguard is the largest institutional shareholder with 16.32% ownership of outstanding stock.
Daniel
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