American Resources Corp (NASDAQ:AREC) CEO Mark Jensen talked with Proactive about a new strategic alliance between its subsidiary, ReElement Technologies, and Principal Minerals.
The collaboration focuses on co-locating metalization and refining technologies to produce rare earth metals for magnets at reduced cost and greater efficiency.
Jensen explained that Principal Minerals, led by Adam Johnson—who played key roles at MP Materials and ARA—brings deep expertise in the magnet and defense industries.
He emphasized that this co-location model could result in cost savings of up to 30%, which is particularly impactful for defence sector customers requiring long-term, cost-effective supply chains.
“Our goal is to cut out logistics, cut out energy costs, and feed materials directly into this process,” said Jensen.
“It’s combining two of the most innovative technologies within the industry today.”
The company is currently engaging with various state economic development committees and considering its Marion facility as a possible site, with 400,000 square feet available.
Jensen noted the partnership aligns with US government priorities to develop secure domestic supply chains for critical materials, adding: “We're going to be the first on metal...so that we can never be subject to having to work with adversaries.”