American Resources Corp (NASDAQ:AREC) and its subsidiary ReElement Technologies have signed a memorandum of understanding (MOU) with Impossible Metals Inc to jointly develop a vertically integrated US-based supply chain for critical minerals, the companies said on Monday.
The partnership aims to combine Impossible Metals' deep-sea nodule harvesting technology with ReElement's refining capabilities to deliver copper, cobalt, nickel, manganese, and rare earth elements from seabed to finished product within the US.
Under the agreement, ReElement will refine deep-sea nodules collected by Impossible Metals and deliver separated, high-purity materials to downstream customers. The venture seeks to reduce reliance on China for key minerals used in defense, energy storage, and advanced manufacturing.
The companies said their combined approach—mining in federal waters near American Samoa and refining in Indiana—offers an end-to-end supply chain solution intended to enhance environmental stewardship while supporting national industrial goals.
“We're excited to bring ReElement's advanced refining capabilities to this important mission and serve as the toll processor for materials essential to America's energy and defense security,” Mark Jensen, CEO of ReElement told shareholders.
“Both of our teams share a clear vision for establishing an efficient, scalable, and 100% US mining-to-processing supply chain for the critical materials necessary for defense and advanced industrial purposes,” Oliver Gunasekara, CEO of Impossible Metals added.
Impossible Metals, which has advocated for US seabed mining policy, plans to deploy its autonomous underwater platform, Eureka III, in 2026 to collect polymetallic nodules without disturbing marine life. The company has also prompted the Department of the Interior to begin permitting for deep-sea mineral extraction in US federal waters.
The initiative follows an executive order signed in April by former President Donald Trump aimed at accelerating offshore critical mineral development. The order underscores growing political support for domestic sourcing of rare earths and other strategic resources.
Shares of American Resources jumped on the update, adding 14.3% at $1.54 on Monday morning.