EXIM backs $150M for critical mineral refinery expansion

FISHERS, IN - American Resources Corporation (NASDAQ:AREC), currently trading at $0.66 per share with a market capitalization of $54 million, through its subsidiary ReElement Technologies Corporation (RTC), has secured a Letter of Interest from the Export-Import Bank of the United States (EXIM) for up to $150 million. According to InvestingPro data, the company’s stock has experienced significant volatility, declining 46% over the past six months, though analysts project substantial revenue growth of 249% for fiscal year 2025. This financing is earmarked for the expansion of the Marion Advanced Technology Center, poised to become the largest multi-mineral, multi-feedstock rare earth and critical mineral refinery in the nation.

The Marion facility is an extension of ReElement’s operations, following its commercial success in Noblesville, Indiana, where it supplies refined critical minerals to both commercial and defense markets. The support from EXIM aligns with the U.S. government’s "Make More In America" initiative and the recent Executive Order aimed at bolstering American mineral production. InvestingPro analysis reveals that while the company faces current financial challenges with a weak overall health score, analysts maintain optimistic forecasts, expecting profitability in the current fiscal year.

Mark Jensen, CEO of ReElement Technologies, stated that this federal support would accelerate the expansion of their refining capacity. He emphasized the company’s strategic production scale-up to address the increasing demands from commercial and defense sectors. Jensen highlighted ReElement’s capabilities to produce materials at quantities and cost structures that are competitive with international players, specifically China.

The company’s innovative refining process utilizes patented chromatography-based methods, which are touted as safer and more environmentally friendly due to their aqueous chemistry and lack of toxic solvents. The technology is also celebrated for its scalability and versatility, allowing for rapid adaptation to various feedstocks and production scales.

ReElement’s technology was initially developed at Purdue University for pharmaceutical applications and has since been adapted for rare earth and critical mineral separation. This advancement is expected to alleviate a significant bottleneck in global supply chains by reducing reliance on single-source processing and enhancing supply chain security.

The funding from EXIM is part of broader federal efforts to streamline permitting, mobilize capital, and establish offtake agreements for U.S.-based critical mineral processing facilities. These actions are in response to mandates set by the March 20, 2025, Executive Order on increasing American mineral production. For deeper insights into AREC’s financial health and growth prospects, including 15+ additional ProTips and comprehensive valuation metrics, investors can access the detailed Pro Research Report available on InvestingPro.

The Marion Advanced Technology Center’s expansion is a strategic move by American Resources Corporation and its affiliates to strengthen the U.S. position in the critical mineral supply chain, from extraction to refining and beyond. The information for this article is based on a press release statement.

In other recent news, American Resources Corporation has reported several significant developments. The company, through its subsidiary ReElement Technologies, has enhanced its rare earth refining capabilities, establishing itself as a key player in the domestic supply chain for critical minerals. This move comes amidst China’s restrictions on critical mineral exports, highlighting the importance of a robust domestic supply. Furthermore, American Resources has extended its antimony refining contract with ReElement Technologies Corporation to ten years, which is expected to generate annual revenues exceeding $29 million.

In another development, American Resources completed the sale of its subsidiary, American Infrastructure Corporation, to CGrowth Capital Inc., marking a significant step in its corporate restructuring. Additionally, the company has appointed Anthony Carroll to the Board of Directors of ReElement Technologies Africa Ltd., aiming to strengthen its partnerships in Africa. Lastly, American Resources received a Nasdaq delisting notice due to a late filing, although the company has since complied with the necessary requirements. These recent updates reflect the company’s strategic efforts to strengthen its operations and market position.

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