American Resources Corp (NASDAQ:AREC), through its subsidiary ReElement Technologies Corporation, announced that the US Department of Defense (DoD) has awarded $2 million to support the company’s advanced rare earth element (REE) refining technology.
The funding, provided through the DoD’s Office of the Assistant Secretary of Defense for Industrial Base Policy under the Industrial Base Analysis and Sustainment Program, is intended to expand domestic REE separation and purification capabilities.
The initiative aligns with White House and Department of Defense priorities to establish a secure, allied rare earth supply chain within the United States.
"We are proud to work with the Department of Defense to deliver innovative refining solutions that strengthen and secure the midstream segment of our domestic supply chain,” ReElement Technologies CEO Mark Jensen said in a statement.
“Our versatile refining platform is leading the industry in producing separated and purified critical minerals and rare earth elements that directly support the defense industrial base and our national security needs.”
ReElement operates a modular refining platform designed to separate and purify both heavy and light rare earth elements.
The system, originally developed at Purdue University for pharmaceutical purification and later reengineered for critical minerals, employs Ligand Assisted Displacement chromatographic separation.
The process uses aqueous chemistry, reducing the need for hazardous organic solvents, and requires fewer units compared with traditional solvent extraction methods.
According to the company, the platform can be deployed across a variety of feedstocks, including ores, recycled magnets, and manufacturing byproducts, at its Marion, Indiana, facility.
ReElement reports that the process achieves 99.5% or higher purity levels for elements such as neodymium, dysprosium, and terbium, while reducing waste and energy consumption compared with conventional refining techniques.
Key rare earth elements, including neodymium, praseodymium, dysprosium, and terbium, are essential in the production of advanced magnets used in defense and commercial applications.
“We believe it is imperative that the US have a sustainable midstream to support a comprehensive critical mineral supply chain,” Jensen added.
“Our 42-acre refining campus in Marion, Indiana, has the capability to supply a majority - if not all - of the rare earth and critical minerals required by the defense industry through a cost-competitive, scalable platform powered by our patented technologies."