American Resources Corporation (NASDAQ:AREC) revealed it has expanded its reach as the company and its affiliate Novusterra had struck an exclusive license arrangement with Kenai Defense Company LLC to advance and commercialize carbon nanostructure and graphene technologies.
In 2022, Kenai anticipates winning Air Force contracts worth over $1.5 million to develop advanced applications to be used as concrete additive and it anticipates an additional $10 million of development funding in partnership with the US Department of Defense.
Under the deal, Kenai also agreed to hit certain milestones, funding commitments for the technology and commercialization dates of which it will pay a split of cashflow generated to American Rare Earth and Novusterra.
"We are seeing a tremendous amount of interest in the use of carbon nanostructures and graphene in the market today for both infrastructure and energy/battery storage purposes," said Mark Jensen, CEO of American Resources, in a statement.
"The value of our technology is that we utilize a very low-cost feedstock (waste carbon fines) versus a more costly alternative (graphite) to produce commercial products. This partnership with Kenai provides us validation of our technology, access to the Department of Defense and space market as well as substantial commitment to advance our technology through additional funding of which we maintain all ownership and rights to private industry commercial applications.
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"This partnership is an exciting win for American Rare Earth, Novusterra and Kenai and the states of Utah, West Virginia and Kentucky where this technology will be built out and commercialized."
The company and Novusterra will equally share (namely: 50/50) in the 20% cash flow stream received from Kenai.
The tie-up is focused on using carbon nanostructures and graphene to increase the strength, reduce cure time and provide a more durable concrete product for defense infrastructure.
American Resources is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. It has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia, where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
Contact the author at giles@proactiveinvestors.com