USA Rare Earth, LLC (USARE), a vertically integrated magnet technology company, announced that it signed a supply agreement with American Resources Corporation’s (NASDAQ:AREC) ReElement Technologies Corporation (ReElement).
Through this agreement, ReElement will supply high-purity rare earth oxides (REOs) to USARE for use at the company’s metal and magnet manufacturing facility in Stillwater, Oklahoma.
USA Rare Earth is poised to become the leading US supplier of rare earth magnets and critical minerals supporting the green energy transition and national defense systems. Rare earth magnets are critical components of electric vehicle motors, wind turbines, robotics, and countless other technologies, including military guidance systems and medical devices. Currently, 90% of these permanent magnets are produced in China, and USA Rare Earth is determined to bring that capability back to America.
In conjunction with USARE’s other supply agreements, the ReElement partnership will allow the company to ramp up magnet production prior to its own rare earth oxide capability coming online in Texas. ReElement’s oxides will also provide an additional source of raw materials, further diversifying USARE’s supply and reducing disruption risk as the company grows.
Headquartered in Fishers, Indiana, ReElement Technologies employs a patented purification and refining process that produces ultra-pure REOs in an environmentally friendly way, a departure from the harsh solvent extraction process typically used in rare earth separations. While their process is capable of adapting to various feedstocks and producing an array of outputs, their rare earth division focuses primarily on neodymium-based permanent magnets.
“We are excited to partner with innovative companies like ReElement to accelerate our production while minimizing our environmental footprint,” said Tom Schneberger, CEO of USA Rare Earth. “Domestic sources for rare earth magnets and critical minerals are more important than ever for national security and the American economy.”
Mark Jensen, CEO of American Resources Corp., added, “We are thrilled to work alongside USA Rare Earth to establish a secure US-based supply chain for rare earth magnets in a more sustainable way. Our patented technology will provide USARE with high-purity oxides for their production of metal and rare earth magnets, reducing dependence on foreign supply.”
The supply agreement is set to commence next year.