American Resources Corp (NASDAQ:AREC) has announced a major funding milestone for its rare earths subsidiary, as ReElement Technologies Corporation secured a US$200 million strategic equity facility from Transition Equity Partners (TEP).
The funding will accelerate the commercial rollout of ReElement’s proprietary multi-mineral refining platform, with an initial focus on expanding its Marion, Indiana facility to meet domestic demand for critical minerals.
The site will process light and heavy rare earths alongside other defense-critical materials using ReElement’s modular, scalable chromatographic separation technology. The Marion facility is expected to reach an initial capacity exceeding 10,000 metric tons per annum of refined minerals sourced from recycled feedstocks and mined concentrates, with potential for further expansion in the US and select international markets.
ReElement is also advancing partnerships to strengthen US supply chains, including a collaboration with the US Department of War and Vulcan Elements to establish a fully domestic rare earth magnet supply chain, and an alliance with POSCO International Corporation to reinforce US-based critical mineral and magnet production capabilities.
Beyond magnets, the company’s platform can process heavy rare earths and other strategic materials not currently produced at scale in the US, including yttrium, gadolinium, germanium, antimony, terbium, and dysprosium, which are subject to export controls from China.
CEO Mark Jensen said the partnership with TEP aligns culturally and strategically, enabling ReElement to expand domestically and globally while building long-term shareholder value.
“The $200 million commitment will enable ReElement to expand its manufacturing base initially in the United States and, over time, globally, to process and refine critical minerals and rare earth elements through a cost-competitive, modular, and scalable platform,” Jensen said in a statement. “TEP is more than an equity sponsor; they are a strategic partner actively supporting ReElement's global growth.”
TEP managing partner Pat Eilers added that ReElement’s platform will bolster US and allied supply chains, delivering low-cost, high-purity minerals in an environmentally advanced process.