ReElement Technologies Inks Major Supply Deal to Scale Domestic Rare Earth Production

A significant milestone in America’s push toward supply chain independence has emerged as ReElement Technologies, the rare earth processing subsidiary of American Resources Corporation (NASDAQ: AREC), locks in a substantial long-term agreement with USA Rare Earth LLC. The partnership signals accelerating momentum in domestic critical mineral refining, with production volumes ramping from commercial launch in 2025 to over 900 metric tons of ultra-pure rare earth oxides annually by 2028.

The Agreement: Scale and Economics

Under the terms of the supply arrangement, ReElement will deliver rare earth oxides exceeding 99.5% to 99.99% purity specifications across its product range. The deal translates to projected annual revenues surpassing $65 million by 2028 (calculated using prevailing market indices), positioning the partnership as one of the largest domestic rare earth refining commitments to date.

USA Rare Earth intends to funnel these ultra-pure materials into its permanent magnet manufacturing operations in Stillwater, Oklahoma, cementing a fully American supply chain for a critical technology sector. This vertical integration model eliminates reliance on foreign suppliers and addresses long-standing national security concerns around rare earth availability.

Technology Advantage: Why This Matters

At the core of this agreement lies ReElement’s proprietary chromatographic separation methodology. Unlike conventional solvent-extraction processes that rely on toxic acids and hazardous chemicals, the company’s approach uses column-based resin technology to achieve purification with significantly reduced environmental footprint and capital requirements.

The process builds on decades of refinement, originally adapted from industrial applications in pharmaceutical insulin production and sugar processing. This heritage delivers proven scalability and cost efficiency compared to legacy hydrometallurgical approaches. By maximizing surface area interface through engineered column systems rather than chemical solvents, ReElement achieves comparable purity at a fraction of the operational complexity.

Strategic Implications for the Supply Chain

This offtake agreement validates a circular economy model where both virgin rare earth ores and end-of-life products—such as recycled permanent magnets and lithium-ion batteries—feed into a unified refining ecosystem. The result: a closed-loop supply chain that transforms domestic waste streams into magnet-grade materials.

For USA Rare Earth CEO Tom Schneberger, the collaboration accelerates production ramp-up while supporting environmental objectives alongside the company’s broader Texas mining development. For ReElement, the deal unlocks pathway toward sustained profitability as its 425,000-square-foot Marion Advanced Technology Campus expands refining capacity.

What’s Next

The initial production phase commences in 2025, with volumes scaling progressively through 2028. As ReElement executes capacity expansions at its 42-acre Indiana facility, the domestic rare earth sector gains a credible, technology-enabled alternative to conventional overseas processing. This shift addresses both economic and geopolitical dimensions of the critical minerals challenge facing industries from EV manufacturing to defense applications.

The partnership demonstrates that American-based rare earth production, once deemed uncompetitive, can now compete on technology, cost structure, and environmental responsibility—creating a structural shift in how the U.S. approaches strategic mineral independence.