American Resources Corp (NASDAQ:AREC) announced that its ReElement Technologies subsidiary has signed a memorandum of understanding (MOU) with POSCO International Corporation.
The company said the agreement aims to strengthen the rare-earth supply chain and explore cooperation on establishing an integrated rare-earth and permanent-magnet production complex in the US.
American Resources noted that the planned integrated rare earth and permanent magnet production complex would be the first US facility to achieve full vertical integration of rare-earth and permanent-magnet production within an integrated industrial complex.
"By combining our patented refining technology with POSCO's industrial capabilities, we are scaling rare earth processing and strengthening the US-Korea partnership to build resilient and sustainable supply chains for critical materials," ReElement Technologies CEO Mark Jensen said in a statement.
"Together, we are proving that innovation and collaboration can deliver secure, long-term solutions for industries and nations that depend on these materials."
American Resources said the US facility would be designed to manage every stage, from securing rare-earth raw materials and conducting separation and refining, to manufacturing permanent magnets and recycling manufacturing scrap and end-of-life magnets-all within one facility.
Under the partnership agreement, POSCO International will oversee sourcing of rare-earth intermediate materials and the permanent-magnet business, while ReElement will provide advanced separation, refining, and recycling technology, according to the company.
American Resources added that the collaboration seeks to diversify and de-risk supply chains, mitigating such risks and creating a foundation for flexible responses to changes in demand.