American Resources Corporation (NASDAQ:AREC) told investors that its ReElement Technologies subsidiary has signed a partnership agreement with American Lithium Energy Corporation (ALE) aimed at enhancing the current supply chain for lithium-ion batteries to the energy storage industry.
Under the agreement, ReElement Technologies will supply the high-purity lithium and other refined battery minerals to be used in creating ALE's state-of-the-art batteries that are used in a variety of applications and industries including medical, aerospace, defense, and electric vehicles.
"Their patented suite of technologies and close relationship with the Department of Defense and Department of Energy is perfectly aligned with what we do at ReElement Technologies by enabling the companies to establish a fully domestic and sustainable supply chain to source battery minerals and manufacture them into high-end batteries for our military, space and domestic industries that need ultra, high-end batteries,” American Resources Corporation (NASDAQ:AREC) chairman and CEO Mark Jensen said in a statement.
“The high purity of the products that we produce combined with ALE's innovative and patented battery manufacturing processes will enable us to collaboratively supply industry best safety in refining, manufacturing and unmatched performance.”
Investment in American Lithium Energy Corporation
Concurrent with the partnerships, American Resources said it and its affiliates will invest up to $3 million into ALE as a lead investor in a capital raise conducted by ALE to help accelerate the company's production expansion and product innovation.
"We are excited about forming this partnership with ReElement Technologies. Being one of the only scalable, domestic and cost-competitive refining solutions that is able to safely process and purify various lithium and critical mineral feedstocks to greater than 99.986% purity through their patented process, ReElement Technologies is a key domestic partner to ALE as we expand our own production of specialty, high-performance batteries,” American Lithium Energy Corp founder and chairman Jiang Fan commented.
“Our collaboration, not only on feedstock and high-purity battery materials but also on combining our respective manufacturing processes, will be a first in the United States and one that can serve as a model for additional lithium-ion and other chemistry battery production domestically."
Contact the author at stephen.gunnion@proactiveinvestors.com