American Resources Corp (NASDAQ:AREC) earlier this week announced the launch of what it describes as the world’s first utility token for critical minerals.
The token, based on neodymium, marks a significant development in applying blockchain-based traceability and compliance tools to the domestic mineral supply chain.
The initiative is driven by a partnership with SAGINT, a technology firm focused on tokenizing critical mineral assets.
Speaking to Proactive, executive vice president Mark LaVerghetta said the company is aligning with DFARS (Defense Federal Acquisition Regulation Supplement) requirements, particularly for government and defense-related procurement.
“We’re really pulling forward what the market is demanding,” LaVerghetta said, highlighting the increasing need for full traceability, transparency, and sovereignty over mineral origin and processing.
The ReElement refining platform, affiliated with American Resources, enables a multi-mineral, multi-feedstock operation that currently runs at facilities in Noblesville and Marion. The company is actively scaling these facilities throughout the year.
In addition to neodymium, American Resources plans to tokenize other rare earth and critical minerals including yttrium, gadolinium, germanium, and samarium. Samarium is particularly important for the defense industrial base due to its use in samarium cobalt magnets.
“There’s a lot of urgency to fill some of those supply chain gaps,” LaVerghetta said. He added that the company’s vertically integrated approach will help address not only near-term shortages but also long-term compliance challenges.
ReElement is majority-owned independently, but American Resources still retains just under a 20% stake. According to LaVerghetta, this ownership model allows the parent company to support the broader vision of developing a full-spectrum critical mineral platform.
With its tokenization strategy and vertically integrated refining infrastructure, American Resources is positioning itself at the forefront of reshaping the US critical mineral supply chain, especially as government and defense agencies seek secure, domestic alternatives.