American Resources Corp (NASDAQ:AREC) said Tuesday its rare earth refining unit ReElement Technologies has signed a binding long-term supply agreement with US magnet manufacturer Vulcan Elements, in a move aimed at building a fully domestic supply chain for critical minerals.
Under the deal, ReElement will provide magnet-grade high-purity heavy and light rare earth oxides, including neodymium, neodymium-praseodymium, and dysprosium, to support Vulcan’s magnet production.
The partnership brings together ReElement’s refining and recycling capabilities with Vulcan’s manufacturing operations, with plans to expand volumes in line with demand growth.
“We’re proud to advance our relationship with Vulcan into a multi-year contract that reflects our mutual commitment to building a resilient, US-based rare earth magnet supply chain,” ReElement CEO Mark Jensen said in a statement.
Jensen told shareholders that the company’s refining platform can produce oxides at costs comparable to Chinese suppliers while being domestically sourced and sustainably processed.
Vulcan CEO John Maslin said the agreement was “a crucial step toward restoring American manufacturing and strengthening our technological and industrial base for decades to come.”
ReElement uses a proprietary chromatographic separation and purification process that it says reduces costs, chemical use and environmental impact compared with traditional solvent-based refining. The technology is designed to be modular and adaptable across feedstocks, allowing for distributed production and recycling to support supply chain independence.
American Resources shares added 6.3% on the update.