American Resources Corp (NASDAQ:AREC) said earlier this week it is advancing expansion at its ReElement Technologies facility in Marion, Indiana, as it scales rare earth and critical minerals processing capacity to meet rising demand.
CEO Mark Jensen told Proactive planned production capacity has been increased to more than 16,000 metric tons from about 8,000 metric tons, citing growing interest from defense and commercial customers. The expansion is expected to help address supply chain needs for high-value critical minerals in the United States and allied markets.
The company’s modular processing model enables incremental capacity additions as demand evolves, with plant buildouts typically completed within six to nine months.
The Marion facility, a 42-acre site with about 400,000 square feet of space, offers further expansion potential, with only around 160,000 square feet currently in use. Additional processing capabilities are being developed for minerals including scandium, terbium and tungsten.
The project is running at less than 75% of its allocated budget, an uncommon outcome for a fast-moving industrial buildout, with the company focusing initially on rapid expansion before optimizing operations to reduce costs.
American Resources is aiming to compete with established global producers, including China, by lowering costs and offering competitive pricing, while diversification across multiple minerals is intended to mitigate pricing risks.
Near-term milestones include commissioning initial production lines and adding capacity in phases through 2026, as the company works to meet customer demand.