American Resources Corp (NASDAQ:AREC) said its Electrified Materials Corporation subsidiary has procured its first battery shredding line, expanding the company's ability to process lithium-ion batteries and produce conditioned feedstocks for downstream refining.
The new line will initially focus on lithium iron phosphate batteries, the company said in a statement.
American Resources said EMCO and its sister company, ReElement Technologies Corporation, have validated a recycling pathway based on lithium payable economics, enabling a viable circular model for LFP batteries without dependence on nickel or cobalt monetization. ReElement will receive conditioned battery material feedstocks from EMCO for downstream separation, purification and refining.
Mark Jensen, CEO of American Resources called the milestone “another important step in our strategy to build a comprehensive domestic critical mineral supply chain.”
"In the case of LFP, ReElement's refining capabilities allow us to pursue an economically viable circular model based on lithium recovery, rather than depending on nickel and cobalt economics that are not present in meaningful quantities in LFP chemistry,” Jensen told shareholders.
EMCO said it expects to process a range of battery chemistries over time, including nickel manganese cobalt, lithium cobalt oxide and lithium manganese oxide, alongside LFP.
The shredding line complements EMCO's existing processing capabilities for magnet materials, copper, aluminum, and ferrous metals recovered from end-of-life products and manufacturing scrap. The company said the addition advances its ability to offer safe disposition, shredding and pre-processing services for end-of-life, off-warranty and off-spec batteries.
American Resources said the announcement reflects its broader refining-first strategy, which addresses the midstream bottleneck of separation, purification and refining before developing complementary upstream segments such as recycling and feedstock conditioning.