American Resources Corp (NASDAQ:AREC)’ subsidiary ReElement Technologies has signed a memorandum of understanding (MOU) with Principal Mineral to develop an integrated rare earth separation and metal production capability in the United States.
Announced on Wednesday, the agreement outlines plans to combine rare earth separation, fluoride production, and metallization within a single co-located facility.
The companies said the collaboration is designed to enhance efficiency and reduce reliance on foreign supply chains by establishing a domestic rare earth midstream capability.
Potential sites under review include ReElement’s Marion, Indiana, supersite, Principal Mineral’s critical minerals campus in Camden, South Carolina, and other locations. The facility would integrate both companies’ technologies and production processes.
Under the MOU, ReElement will provide magnet-grade separated rare earth products refined from end-of-life magnets, manufacturing scrap, mine tailings, and ore concentrates.
Principal Mineral will use its proprietary technologies to convert these products into rare earth fluorides and metals, with a focus on US defense and industrial markets.
The companies said the co-located facility is expected to streamline production, improve efficiency, and reduce waste. They also intend to collaborate with additional industry partners to further strengthen the Western rare earth supply chain.
“By uniting the full midstream - from recycled and mined rare earth materials to high purity fluoride and metal - as a singular process in one US facility, we're breaking the choke points that have long left our nation vulnerable,” ReElement CEO Mark Jensen said in a statement.
“Co-locating these operations is a game-changer, as it enables greater efficiency, reduces costs for customers, and helps eliminate key bottlenecks.”
Adam Johnson, Principal Mineral CEO, added that the partnership creates what he described as “the most versatile midstream rare earth operation in the world, purpose-built to serve America's defense industrial base and key commercial industrial players.”
“By eliminating the handoffs and inefficiencies that have hindered domestic competitiveness, we are accelerating a secure, scalable supply of rare earth products to ensure our national security and economy leadership,” Johnson said.
“And this is just the beginning: our alliance is a blueprint for how US industry can integrate capabilities, rebuild supply chains, and lead the world in critical mineral innovation for decades to come.”