Shares of American Resources Corp (NASDAQ:AREC) rose 13% in morning trading after its subsidiary, ReElement Technologies, signed a long-term supply agreement with POSCO International America. The partnership is designed to strengthen U.S. capacity for refining rare earth elements while deepening industrial ties with South Korea.
Under the deal, ReElement will supply purified oxides such as neodymium, praseodymium, dysprosium and terbium, which are essential for magnets in electric vehicles, wind turbines, defence systems and advanced electronics. Supply volumes are expected to exceed 3,000 metric tons through 2030.
The companies will also form a joint task force to secure raw material feedstock, including mining concentrates, magnet waste and scrap. Longer term, they plan to co-develop refining capacity inside the U.S., reducing reliance on Asian processing.
ReElement uses a chromatographic separation method that it says is more scalable and environmentally friendly than traditional refining. POSCO, one of the world’s largest steelmakers, has broadened into advanced materials and clean energy.
Chief executive Mark Jensen said the partnership combines ReElement’s technology with POSCO’s industrial scale to create “resilient, transparent, and sustainable” supply chains.
The shares were up 37 cents at $3.15.