FISHERS, IN - American Resources (NASDAQ:AREC) Corporation's (NASDAQ:AREC) subsidiary ReElement Technologies has announced a sales and offtake agreement with USA Rare Earth LLC. The deal, set to commence in 2025, involves the production and sale of high purity rare earth oxides, which are crucial for manufacturing permanent magnets.
ReElement will supply over 900 metric tons of these oxides annually by 2028, potentially generating over $65 million in yearly revenue. The oxides, touted to be 99.5% to 99.99% pure, will be used by USA Rare Earth in its permanent magnet facility in Stillwater, Oklahoma.
The company's patented technology for rare earth oxide production is currently operational at its Noblesville, Indiana facility, with plans to expand at the Marion Advanced Technology Campus. This technology, which has been adapted from processes used in the sugar and pharmaceutical industries, uses columns and resins instead of toxic acids and solvents, aiming to reduce environmental impact and operational costs.
Mark Jensen, CEO of ReElement Technologies, expressed enthusiasm for the partnership, emphasizing the role of the agreement in bolstering the domestic supply chain for permanent magnets and battery materials. Tom Schneberger, CEO of USA Rare Earth, echoed these sentiments, highlighting the importance of a secure US-based supply chain.
ReElement's innovative process aligns with the company's mission to lead the domestic supply chain for refined rare earth and battery elements, crucial for the electrified economy and national security. By scaling up production at its facilities, ReElement aims to decrease US dependency on foreign sources for these materials and promote a sustainable circular economy.
This partnership represents a significant step towards establishing a domestic supply chain for rare earth elements, which are essential for various industries, including electric vehicles and green energy. The information for this article is based on a press release statement.
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