ReElement expands rare earth refining capacity at Indiana facilities

FISHERS, Indiana - ReElement Technologies Corporation, a portfolio company of American Resources Corporation (NASDAQ:AREC), announced Thursday it is expanding production capacity at its Indiana facilities to meet growing demand for rare earth elements and critical minerals. The announcement comes as AREC, currently valued at $221.68 million, has seen its stock surge nearly 500% over the past six months, according to InvestingPro data.

The company’s Marion Supersite is scaling up to process 2,500-3,500 metric tons annually of magnet-grade separated rare earths, battery materials, and antimony in its Phase 1 development. Meanwhile, the Noblesville facility is increasing production to over 250 metric tons per year of ultra-pure defense elements and separated rare earth oxides. While AREC currently operates with significant debt obligations, analysts maintain a bullish outlook, with price targets ranging from $4 to $6 per share. For deeper insights into AREC’s financial health and growth prospects, including 13 additional ProTips, check out the comprehensive analysis available on InvestingPro.

According to the press release, ReElement has already ordered, identified, or begun installing more than 60% of the equipment needed for Marion’s initial growth phase. The facility will utilize 5-foot diameter columns, significantly larger than the 18-inch columns at Noblesville.

"Our recent expansion in Noblesville demonstrates the scalability of our refining platform and its ability to meet near-term demand," said Jeff Peterson, COO of ReElement Technologies, in the statement.

The Marion complex occupies approximately 40,000 square feet within an existing 400,000+ square foot facility, providing room for future expansion. The company states its proprietary chromatography refining method achieves ultra-high purity (99.5%+) oxides while using up to 100 times greater efficiency and producing 80% less waste than traditional methods.

Mark Jensen, CEO of ReElement Technologies, claimed in the announcement that the Marion facility "will be the largest facility outside of China for rare earth oxide production and defense elements within the next three years."

The company reports its technology can process various feedstocks including recycled magnets, manufacturing waste, and concentrated ores to produce elements essential for defense applications, electric vehicles, and renewable energy.

The information in this article is based on a press release from American Resources Corporation. While the company currently faces profitability challenges, InvestingPro analysts project a return to profitability in 2025, potentially supporting its ambitious expansion plans. Get access to the full AREC Research Report, one of 1,400+ comprehensive company analyses available on InvestingPro.

In other recent news, ReElement Technologies, a portfolio company of American Resources Corporation, has announced a significant expansion of its Noblesville facility. The expansion increases the facility’s capacity to over 16,500 square feet, allowing for the refining of more than 200 metric tons annually of ultra-pure separated defense elements and rare earth oxides. Additionally, ReElement Technologies has signed a memorandum of understanding with POSCO International to establish a rare earth and permanent magnet production complex in the United States, marking a notable collaboration in the industry. The company has also entered into an offtake agreement with POSCO International America Corp to refine rare earth elements, highlighting its strategic partnerships in the sector.

Furthermore, ReElement Technologies has joined the Consortium for Rare Earth Technologies (CREate) through a partnership with Advanced Technology International. This membership comes after receiving a $2 million award under the Department of Defense’s Industrial Base Analysis and Sustainment Program. In the realm of stock analysis, D. Boral Capital has initiated coverage on American Resources Corporation, giving it a Buy rating with a price target of $6.00. The firm highlighted American Resources’ strategic ownership in critical mineral refining and its 19% stake in ReElement Technologies as a key asset.

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