American Resources Corporation (NASDAQ: AREC) and its holding company, ReElement Technologies Corporation, have announced an expansion of their Kentucky Lithium plant. The initiative aims to produce ultra-pure rare earth oxides (REOs) – critical materials for a variety of high-tech applications – from coal and mining waste.
This development follows ReElement’s recent successful closure of $150 million in financing. The company plans to process material sourced from its Oceana, West Virginia site, which boasts over 550 parts per million (ppm) of rare earth elements, along with aluminum and silicon, making it valuable for both the semiconductor and battery industries.
ReElement’s Noblesville, Indiana facility is already engaged in the production and sale of rare earth oxides to multiple U.S. customers, with demand currently surpassing the plant’s capacity. This expansion into Kentucky represents a strategic move to meet growing market needs and capitalize on the unique capabilities of ReElement’s technology.
This initiative capitalizes on ReElement’s exclusive worldwide patents for rare earth and critical mineral processing, developed in collaboration with Purdue University. Moreover, the company has engineered economically viable refining solutions to process coal mine waste concentrate within the United States. This innovative approach will enhance value across multiple stages of the processing chain.
Mark Jensen, Chairman and CEO of ReElement Technologies, stated, “This development marks a significant milestone…showcasing the versatility, flexibility and scalability of our refining technology on the global stage.” The company is actively working towards expansions in Marion, Indiana, and Knott County, Kentucky, which will allow them to respond to market demand and diversify supply chains away from China. Jensen added, “By leveraging ReElement’s technical innovation and cost-effective methods, we are creating value across multiple stages of the process chain and delivering benefits to shareholders of both ReElement and American Resources.”
The company’s approach offers several key advantages:
- Multi-feedstock processing capabilities.
- Lower capital intensity in comparison to traditional mining.
- Conversion of environmental liabilities into assets.
- Existing commercial production and sales.
- Strategic domestic production capacity.
The strategic expansion of the Kentucky plant, fueled by burgeoning demand, highlights the project’s market validation. The focus on high-margin, low-cost processing allows the company to compete effectively with Chinese producers, while also aligning with current regulatory and policy aims through its environmental benefits and domestic production capacity.
