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AREC and ERI Join Forces to Strengthen U.S. Rare-Earth Supply Chain

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Key Takeaways

  • AREC's unit ReElement forms a rare-earth processing partnership with ERI.
  • ERI will collect and pre-process magnet materials from end-of-life electronics.
  • ReElement will ship 99.99% pure rare-earth oxides from its Marion site in early 2026.

American Resources Corporation’s (AREC - Free Report)  portfolio company, ReElement Technologies, recently entered a rare-earth elements processing partnership with ERI. Per the agreement, ERI will utilize its extensive nationwide electronics-recycling network and U.S. processing facilities to collect and pre-process magnet-bearing materials recovered from end-of-life devices. 

ReElement Technologies will then refine this recycled magnet feedstock into high-purity rare-earth oxides, with trial shipments of 99.99%+ pure rare-earth oxides already underway to qualified commercial and defense-sector customers. ReElement is currently taking orders for these materials, and production is ongoing at its Noblesville, IN, plant. Both companies note that this collaboration marks a step toward establishing a reliable domestic supply of refined rare-earth materials. 

The partnership is considered a critical move in building a circular, U.S.-based supply chain for rare-earth elements, reducing dependence on imports amid rising demand from electric mobility, defense and advanced-technology applications. The initiative is expected to gain further scale once large-scale commercial production at ReElement’s 400,000-square-foot Marion, IN, processing complex commences in early 2026. 

Shares of AREC have rallied 133.6% over the past year compared to its industry’s modest 14.8% rise. 

Zacks Investment ResearchImage Source: Zacks Investment Research

AREC Zacks Rank & Other Key Picks

AREC currently carries a Zacks Rank of #2 (Buy). 

Other top-ranked stocks in the Basic Materials space include Equinox Gold Corp. (EQX - Free Report) , Barrick Mining Corporation (B - Free Report)   and CSW Industrials, Inc. (CSW - Free Report) . EQX, B and CSW carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank here.

The Zacks Consensus Estimate for EQX’s current fiscal-year earnings is pegged at 52 cents per share, indicating a 160% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 87%. 

The Zacks Consensus Estimate for B’s current-year earnings is pegged at $2.25 per share, indicating a 79% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 9%. 

The Zacks Consensus Estimate for CSW’s current fiscal-year earnings is pegged at $10.4 per share, indicating a 24% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 7%. 

 


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