American Resources Corp (NASDAQ:AREC), through its holding in ReElement Technologies, has secured a $20 million equipment leasing facility from Maxus Capital Group.
The financing will support the purchase of large-scale equipment to expand rare earth, battery material, and critical defense element production at ReElement’s facilities in Marion and Noblesville, Indiana.
According to the company, the non-dilutive capital, together with an existing Department of Defense contract and equity resources, will be directed toward scaling operations in Marion for large-scale production of rare earth oxides from magnets and lithium carbonate from LFP black mass.
Additional capacity at the Noblesville facility is also expected to help meet near-term customer demand.
"Securing this financing marks another pivotal step forward for ReElement Technologies,” ReElement Technologies chief financial officer Kirk Taylor said in a statement.
“It allows us to meet near-term customer demand at our Noblesville facility while accelerating scaled production in Marion - two key drivers of revenue growth.”
ReElement employs a proprietary separation and purification platform that uses chromatographic technology, which the company describes as a scalable and environmentally friendly alternative to traditional solvent-based processing.
The method is designed to lower capital costs, reduce chemical usage, and minimize environmental impact while improving processing efficiency.
The company noted that its platform enables production of high-purity materials from multiple feedstocks, including recycled magnets, batteries, manufacturing scrap, mine waste, and virgin ores.
ReElement stated that this approach supports US initiatives to strengthen domestic mineral supply chains and aligns with the Department of Defense’s 2027 mine-to-magnet objectives.