American Resources secures $150M valuation, expands equipment

FISHERS, IN - American Resources Corporation (NASDAQ:AREC), currently trading at $0.48 with a market capitalization of $37.24 million, through its subsidiary ReElement Technologies Corporation, has announced the successful closure of a private capital round, securing a pre-money valuation of $150 million. The funds will be used to procure and commission new commercial-scale equipment for its facilities in Noblesville and Marion, Indiana. According to InvestingPro analysis, this capital injection comes at a crucial time as the company has been quickly burning through cash.

The investment comes as a strategic move following China’s recent restrictions on the export of critical minerals, which has increased the demand for domestically produced rare earth elements. ReElement is poised to meet this demand with its high-performance refining capacity for rare earth and defense minerals. InvestingPro data reveals the company faces significant financial challenges, with a weak financial health score and current ratio of 0.23, indicating potential liquidity concerns. Get access to 15+ additional ProTips and comprehensive analysis with an InvestingPro subscription.

Approximately 60% of the $20 million Convertible Note issued in the capital round has been committed or funded, with the company aiming to complete the round soon. Significant contributions came from management, board members, and strategic investors.

ReElement’s Commercial Qualification Facility in Noblesville currently operates three chromatography equipment lines. The newly commissioned equipment includes a third chromatography unit and a Bipolar Electrodialysis Unit (BPED), which is crucial for optimizing scalability, recycling chemicals, and reducing operating costs.

The BPED unit, supplied by the U.S. division of a European company, plays a vital role in producing lithium hydroxide and carbonate, reducing waste, and reclaiming valuable chemicals. It also serves as a pilot-scale testing platform to optimize the process before full-scale implementation at the Marion facility, contributing to sustainability by reducing overall water consumption.

On April 3, 2025, China imposed new export restrictions on several critical rare earth minerals, which has led to increased opportunities for domestic suppliers like ReElement. Mark Jensen, CEO of ReElement Technologies, emphasized the company’s unique position as the only U.S. firm currently separating and purifying heavy rare earth elements under Chinese export control.

ReElement Technologies, a wholly owned subsidiary of American Resources Corporation, is recognized for its innovative and scalable refining technology that focuses on creating a cost-effective and environmentally-safe supply chain for rare earth and critical battery elements.

This news, based on a press release statement, highlights ReElement’s efforts to enhance its production capabilities and address the growing need for a secure supply chain of critical minerals in the United States. With revenue declining by 98% in the last twelve months and an EBITDA of -$23.16 million, investors can access detailed financial analysis and Fair Value estimates through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

In other recent news, American Resources Corporation has secured a bond extension to further develop its Kentucky Lithium LLC facility. This extension involves $150 million in Kentucky Industrial Building Revenue Bonds, Series 2024, aimed at enhancing the facility’s capabilities in producing battery-grade lithium and refining rare earth oxides. Additionally, the company announced the commissioning of new equipment at its Noblesville, Indiana facility, boosting the production of rare earth oxides with a focus on achieving purities exceeding 99.5%. American Resources, through ReElement Technologies, also entered a tolling agreement for refining antimony ore, with expectations of generating annual revenues over $29 million. This agreement is particularly significant given recent geopolitical tensions affecting mineral exports. Furthermore, American Resources is strategically shifting to utilize coal tailings as a primary feedstock for producing heavy rare earth oxides, addressing global shortages. The company is leveraging its chromatographic separation technique to economically refine coal waste concentrates, emphasizing the potential to reshape resource dynamics with millions of tons of stored material.

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