American Resources Corporation (NASDAQ:AREC) (ARC) announced that its subsidiary reELEMENT Technologies has set up a $2 million independent working capital facility to expand its critical battery materials production facility in Indiana.
The funds will also be used to increase internal lab space and set up additional preprocessing to scale production of high-purity, durable critical elements and rare earths for batteries and magnets, the company said.
The working capital facility was set up by Maxus Capital and allows reELEMENT to build a credit history and provides low-cost, non-dilutive growth capital.
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“We have had a positive relationship with the Maxus Capital team and are delighted to bring them on board as a partner in the reELEMENT business, as we bring innovative solutions as the premier and most efficient commercial producer of critical and separated and purified rare earth elements to support the growth of [electric vehicles] and the green energy movement and significantly build capacity in our home market,” ARC CEO Mark Jensen said in a statement.
Maxus also recently visited the company’s purification facility in Noblesville, Indiana. The facility has successfully completed the chromatography column preparation and system commissioning process for the first-of-its-kind rare earth element production train capable of producing high purity rare earth oxides of magnetic quality in the United States, the company said.
“After touring the facility and seeing the progress they have made, we were excited to set up this initial facility to allow reELEMENT to grow beyond its current rare earth production train,” said Mike Dance, COO of Maxus.
“We are impressed with the breakthrough technology they are bringing to market and believe our capital is a cost-effective way to leverage their asset base and expand their magnet and battery recycling capacity.”
Over the next few weeks, reELEMENT will begin producing pure neodymium, praseodymium, and dysprosium fractions and a high-purity mixed NdPr fraction from end-of-life rare-earth permanent magnets that can be used in the manufacture of new magnets and technologies. , the company noted.
The current Noblesville, Indiana facility will eventually be converted into a commercial-scale chromatography test and innovation center to continuously optimize the process for expansion and future capabilities, said the society.
Additionally, reELEMENT has a 7.5 acre site in Noblesville for future expansion. The current operating site is extended to three production trains for magnet recycling to isolate and purify neodymium, praseodymium and dysprosium into magnetic grades and two production trains for battery recycling as mass processing black in battery grade isolated and purified individual elements (cobalt, nickel and manganese sulphates and lithium hydroxide).
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