Highlights

• American Resources Corporation's ReElement Technologies develops breakthrough terbium refining technology with over 99.5% purity.
• New patented ligand-assisted displacement (LAD) chromatography process offers cost-effective and environmentally friendly rare earth processing.
• Aims to reduce U.S. dependence on Chinese rare earth element supply chains, particularly for critical national defense applications.

American Resources Corporation's (opens in a new tab) subsidiary, ReElement Technologies (opens in a new tab), announced (opens in a new tab) a breakthrough in rare earth refining, achieving over 99.5% purity for terbium and other rare earth elements using a patented ligand-assisted displacement (LAD) chromatography process.

This capability positions ReElement as a rare U.S.-based producer of high-purity terbium, critical for national defense applications like aircraft, submarines, and missiles. The achievement is significant as terbium is challenging to refine and is primarily sourced from China, providing a potential strategic edge in reducing U.S. reliance on foreign supply chains.

Additionally, the technology claims to offer cost-effective, environmentally friendly processing, potentially disrupting traditional solvent-based methods.  While promising, investors should critically assess several factors. The company assumes the scalability of its technology and competitive cost advantages over Chinese producers, who dominate the global market.

The announcement lacks detailed financial projections or third-party validation, which raises questions about commercial viability.  A marketing artifact, the press release must be validated. Moreover, the company's heavy reliance on patents and exclusivity from Purdue University introduces potential risks if these technologies face challenges in scaling or intellectual property disputes.

Material biases may stem from forward-looking statements aimed at boosting investor confidence, emphasizing the need for cautious optimism. For investors, the next steps include monitoring customer adoption, regulatory support, and performance at the Marion, Indiana, SuperSite.

Part of an overall trend of efforts in the West to counter China’s predominance in rare earth element mining, processing, and refining.

Though its global production share dropped from an overwhelming 97% in 2011 to around 70% in 2022, China still controls over 85% of processing capacity. China has an effective monopoly over processing major heavy rare earths – Dysprosium (Dy) and Terbium (Tb), and Light Rare Earths – Neodymium (Nd) and Praseodymium (Pr).