American Resources’ ReElement Technologies receives $25M US investment to expand rare earth refining capacity

American Resources Corp (NASDAQ:AREC) said its minority-owned subsidiary ReElement Technologies has been awarded a $25 million investment from the US Department of War through its Economic Defense Unit and the Office of the Under Secretary of War for Acquisition and Sustainment to expand domestic rare earth and critical mineral refining capacity.

The funding, provided through the Industrial Base Fund, will support the expansion of ReElement's Marion, Indiana, refining campus by financing additional refining equipment, production line installation and working capital.

The company said the investment is intended to accelerate commercial production of high-purity rare earth elements and other defense-critical minerals.

ReElement said the expanded facility will process both primary and recycled feedstocks, including end-of-life permanent magnets and other strategic materials, to produce rare earth oxides and specialty critical minerals such as yttrium, gadolinium, germanium and gallium for applications including defense, aerospace, semiconductors and advanced communications.

"This investment reflects the growing importance of secure, domestic refining capacity to America's national security and industrial resilience," ReElement CEO Mark Jensen said in a statement.

"We are excited to expand our partnership with the Department of War as we work together to strengthen America's critical mineral supply chain. This support accelerates our ability to deliver the high-purity rare earth and critical mineral products needed to strengthen our defense industrial base while reinforcing America's long-term economic and national security."

The company said its refining platform is designed to process multiple primary and recycled feedstock sources rather than relying on a single mine or commodity. It uses proprietary chromatographic separation technology to produce high-purity rare earth elements and critical minerals for a range of industrial sectors.

American Resources said the federal investment follows other funding received in 2026 from Transition Equity Partners and Mitsubishi Materials Corporation.

ReElement said it has demonstrated production of more than a dozen rare earth and critical mineral products, including germanium, yttrium, gadolinium, dysprosium, terbium, samarium, neodymium, praseodymium, lithium and tungsten.

The company said the Marion refining campus is being developed using a modular approach that will allow production lines to be commissioned based on customer demand, with the facility expected to support commercial production of multiple rare earth and critical mineral products as part of the U.S. domestic refining supply chain.

Shares of American Resources had gained nearly 8% by midday Tuesday.