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AREC's Portfolio Company Secures $200M Equity Facility From TEP

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Key Takeaways

  • AREC's ReElement formed a strategic partnership with TEP backed by a $200M equity facility.
  • ReElement will expand its Marion platform, targeting over 10,000 metric tons of refined critical minerals.
  • Chromatographic separation enables high-purity rare earths domestically, reducing reliance on foreign.

American Resources Corporation (AREC - Free Report) , via its minority holding in ReElement Technologies Corporation, has formed a partnership with Transition Equity Partners (“TEP”) for a $200 million strategic equity facility to accelerate global critical mineral and rare earth refining capacity and strengthen U.S. supply chains.  

The capital will initially be used to expand the deployment of ReElement’s proprietary modular, multi-mineral refining platform and buildout of its Marion, IN facility, with targeted initial capacity exceeding 10,000 metric tons per year of refined critical minerals, including light and heavy rare earths and defense-related elements, sourced from recycled materials and mined concentrates.  

The partnership also envisions the development of additional refining facilities across the United States and select international locations. ReElement’s chromatographic separation technology enables the production of high-purity critical minerals that are currently unavailable at a commercial scale domestically, helping address strategic supply gaps and reduce dependence on foreign suppliers.  

The company is reinforcing its U.S. supply chain footprint through collaborations with the U.S. Department of War, Vulcan Elements and POSCO International to support the production of rare earth magnets and defense-critical materials. TEP’s global investment experience and advisory capabilities are expected to support ReElement’s international expansion further while enhancing resilient supply chains for energy, defense and advanced manufacturing markets. 

Shares of AREC have rallied 276% in the past six months compared with the industry’s 21.6% rise. 

Zacks Investment ResearchImage Source: Zacks Investment Research

AREC’s Zacks Rank & Key Picks

AREC currently carries a Zacks Rank of #3 (Hold).

Some better-ranked stocks in the Basic Materials space are BHP Group Limited (BHP - Free Report) , Impala Platinum Holdings Limited (IMPUY - Free Report) and Sibanye Stillwater Limited (SBSW - Free Report) . BHP, IMPUY and SBSW sport a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BHP’s current fiscal-year earnings is pegged at $4.51 per share, indicating a 23.9% year-over-year increase. Shares of BHP have gained 31.3% over the past six months.

The Zacks Consensus Estimate for IMPUY’s current fiscal-year earnings stands at $1.33 per share, implying a 2,560% year-over-year increase. Shares of IMPUY have gained 86.1% over the past six months.

The Zacks Consensus Estimate for SBSW’s current fiscal-year earnings is pegged at $2.4 per share, indicating a 1,614.3% year-over-year increase. Shares of SBSW have soared 116.7% over the past six months.

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