American Resources boosts rare earth oxide production

FISHERS, IN - American Resources Corporation (NASDAQ:AREC), through its subsidiary ReElement Technologies, has recently commissioned new equipment that enhances its production capabilities for rare earth oxides, the company announced on March 12, 2025. The preparative scale sequential simulated moving bed (SSMB) production unit is now operational at the Noblesville, Indiana facility, marking the third dedicated chromatography line. With a current market capitalization of $39.29 million, the company is making this strategic move despite facing significant financial challenges, according to InvestingPro data.

This expansion increases the daily output of light and heavy rare earth oxides such as neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb) at purities exceeding 99.5%. ReElement’s platform, distinguished by its multi-mineral, multi-feedstock approach, is unique in the U.S. for economically separating and refining heavy rare earth elements. The company’s ambitious expansion comes as it faces significant operational challenges, with revenue declining 98.13% in the last twelve months. Investors can access detailed financial analysis and 15 additional key insights through InvestingPro’s comprehensive research reports.

Yi Ding, CTO of ReElement Technologies, emphasized the commitment to leveraging cutting-edge technology to enhance scalability and versatility in refining solutions. CEO Mark Jensen expressed gratitude for domestic partners who delivered the equipment ahead of schedule, reinforcing the company’s dedication to leading the domestic market and driving the nation towards mineral independence.

The new SSMB unit employs Ligand Assisted Displacement (LAD) Chromatographic Separation and Purification, a method considered more cost-effective and environmentally safe than traditional solvent-based extraction. The LAD process is notable for its aqueous chemistry, eliminating toxic solvents and offering a cleaner purification method. It also boasts lower capital expenditures, high versatility, and the ability to rapidly adapt to various feedstocks and production scales. The modular nature of the technology allows for scalable capacity, aligning with the growing availability of feedstock.

ReElement Technologies focuses on refining recycled materials from rare earth permanent magnets, lithium-ion batteries, concentrated ores, and coal-based waste streams to create a circular supply chain that is both cost-effective and environmentally safe.

American Resources Corporation is a supplier of raw materials for the infrastructure and electrification markets, with operations in the Central Appalachian basin. The company aims to scale its portfolio to meet the increasing demand for metallurgical carbon, rare earth minerals, and recycled metal. Financial metrics from InvestingPro indicate the company faces near-term challenges with a current ratio of 0.23, suggesting potential liquidity concerns. Investors should note that the company’s next earnings report is scheduled for March 27, 2025, which could provide crucial updates on its operational progress.

The information provided here is based on a press release statement.

In other recent news, American Resources Corporation has secured a tolling agreement for refining antimony ore, which is expected to generate annual revenues exceeding $29 million. The agreement will process approximately 500 metric tons of stibnite ore per month, with potential expansion. This development comes as ReElement Technologies, a subsidiary of American Resources, completed a successful pilot program, refining antimony to a purity level above 99.7%. Additionally, American Resources has shifted its focus to leveraging coal tailings for producing heavy rare earth oxides, addressing a global shortage of these materials. ReElement’s proprietary technology allows for the economic separation and purification of coal waste concentrates, overcoming challenges faced by traditional methods. The company has access to over 128 million tons of waste material across several states, positioning it as a key player in the rare earth market. ReElement stands out as the only U.S. producer of magnet-grade heavy and light rare earth oxides, securing contracts with an estimated 70% of the downstream market. Furthermore, ReElement has announced advancements in extracting mixed rare earth oxides from carbon waste streams, with concentrations above 500 parts per million. This positions the company to offer a robust supply chain for critical minerals, independent of China, amid escalating trade tensions.

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