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SEOUL - ReElement Technologies, a portfolio company of American Resources Corporation (NASDAQ:AREC), has signed a memorandum of understanding with POSCO International to establish an integrated rare earth and permanent magnet production complex in the United States, according to a press release statement issued Thursday. The announcement comes as AREC’s stock shows remarkable momentum, with a 432% surge over the past six months and a market capitalization of $215 million, according to InvestingPro data.
The planned facility would be the first in the U.S. to achieve full vertical integration of rare earth and permanent magnet production, handling everything from raw material processing to manufacturing and recycling within a single complex.
Under the agreement, POSCO International will manage the sourcing of rare earth intermediate materials and permanent magnet production, while ReElement will provide separation, refining, and recycling technology. The governments of both countries have discussed potential policy and financial support for the project.
The signing ceremony at POSCO Center in Seoul was attended by Kye-In Lee, President & CEO of POSCO International; Mark Jensen, CEO of ReElement Technologies; Na Sung-hwa, Director General for Industrial Supply Chain Policy; and Joseph Yun, U.S. Deputy Ambassador to Korea.
"The agreement will help strengthen resource security and diversify supply chains in both Korea and the United States," said Lee.
POSCO International has existing agreements to supply permanent magnets to North American and European automakers between 2025 and 2034, including a contract for approximately 7,700 tons to a major North American automaker.
ReElement is currently developing its critical mineral refining capabilities at facilities in Noblesville and Marion, Indiana, utilizing chromatographic separation and purification methods.
The collaboration aims to address concerns about the current concentration of the global rare earth supply chain, which is essential for industries such as electric vehicles, semiconductors, and wind power. While analysts maintain optimistic price targets between $4-$6 for AREC, detailed financial analysis and 14+ additional ProTips are available through InvestingPro’s comprehensive research reports, helping investors make informed decisions about this emerging player in the critical minerals sector.
In other recent news, American Resources Corporation has been the focus of several significant developments. ReElement Technologies, a portfolio company of American Resources, secured a $20 million equipment leasing facility from Maxus Capital Group. This non-dilutive capital aims to enhance the production of rare earth oxides and other minerals at facilities in Indiana. Additionally, the Department of Defense awarded ReElement $2 million to bolster domestic rare earth element refining capabilities, addressing the need for a reliable industrial base in the U.S.
ReElement also entered into a long-term supply agreement with Vulcan Elements to provide high-purity rare earth oxides for magnet production in the United States. This agreement includes the supply of magnet-grade neodymium, neodymium-praseodymium, and dysprosium oxides. Furthermore, American Resources regained compliance with Nasdaq’s minimum bid price requirement, as confirmed by a letter from Nasdaq. Analyst firm D. Boral Capital recently initiated coverage of American Resources with a Buy rating, setting a price target of $6.00. These developments highlight American Resources’ strategic moves in the mineral and technology sectors.
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