American Resources Corporation (NASDAQ:AREC) said its subsidiary, ReElement Technologies LLC, has signed a memorandum of understanding with USA Rare Earth Magnets LLC to supply recycled, high-purity rare earth oxides for its Stillwater, Oklahoma magnet manufacturing facility.
Once fully commissioned, the Stillwater facility should be the first fully domestic rare earth magnet manufacturer in the United States, according to American Resources.
American Resources CEO Mark Jensen said his company met with the USA Rare Earth Magnets team over the past year, including at the ReElement rare earth and critical battery element purification facility in Noblesville, Indiana.
READ: American Resources Corporation to build lithium ion battery and rare earth magnets recycling facility
“It was very apparent that there were strong synergies between our two companies, and an opportunity to collaboratively bring efficient solutions to our domestic market. We look forward to building on this relationship to ensure that our combined process remains the most cost-effective, environmentally safe and highly scalable to take advantage of such growth domestically and throughout the world," Jensen said in a statement.
USA Rare Earth Magnets’ parent company USA Rare Earth LLC (USARE) acquired the neodymium iron boron permanent magnet manufacturing equipment in April 2020. The equipment is the only scalable, sintered neo-magnet manufacturing system in the western hemisphere, according to American Resources.
USA Rare Earth president Thayer Smith said ReElement's rare earth recovery technology would allow his company to incorporate recycled materials, making for a greener, more sustainable supply chain.
“This is an opportunity to expand our domestic permanent magnet manufacturing capabilities while furthering our commitment to ESG best practices at all levels of the supply chain," said Smith, adding that USA Rare Earth Magnets plans to start production in 2023.
According to American Resources, ReElement Technologies will produce 99.5%-plus pure rare earth oxides from recycled, end-of-life products such as wind turbines, electric vehicle motors, medical devices, and e-waste in the US.
USA Rare Earth Magnets will then produce magnets at commercial scale for the automotive, defense, medical and industrial applications that are in high demand in North America.
In 2021, the US$22 billion per year rare earth magnet market was dominated by China, which is increasingly using rare earth magnets in its own finished and semi-finished products rather than exporting them, according to American Resources.
Industry sources estimate the global rare earth magnet market will nearly double 2020 levels by 2027, the company said, adding that no other commercial scale permanent magnet manufacturing plants are operating in the Americas.
According to USARE’s Smith, the United States, European Union, Japan, and much of the developed world are largely reliant on China for critical rare earth element production.
"Our goal with this project is to advance US manufacturing capacity by establishing the first vertically integrated domestic supply chain for rare earth elements. Engaging in a strategic partner with ReElement Technologies to provide high-purity, recycled materials will significantly accelerate this effort," Smith said.
ReElement Technologies collects end-of-life magnets and batteries that are further processed into an aqueous-based solution to be separated and purified back to magnet and battery grade materials so they can be reused in the manufacturing of new batteries, magnets, or other technologies.
American Resources is a next-generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace.
Contact the author at susie@proactiveinvestors.com