American Resources Corporation (AREC) closed a $200 million strategic equity facility with Transition Equity Partners (TEP) to fund the expansion of its ReElement Technologies refining platform at the Marion, Indiana site.
The Marion plant, a 400,000‑square‑foot former manufacturing facility, will be upgraded to process light and heavy rare earths, battery‑grade lithium, and other defense‑critical materials. The new capital will enable installation of chromatographic separation equipment and push the facility’s capacity beyond 10,000 metric tons per annum of refined minerals sourced from recycled feedstocks and mined concentrates.
AREC has been operating with a working‑capital deficit of $84.8 million against $8.4 million in current assets as of September 30 2025, and reported a net loss of $4.4 million on $165 million of revenue in Q3 2025. The equity injection is intended to shore up liquidity, reduce cash burn, and support the company’s broader strategy of spinning off ReElement and its infrastructure assets.
Investors responded positively to the announcement, reflecting confidence that the funding will address the company’s liquidity challenges and accelerate a high‑growth, low‑carbon refining platform that aligns with national security priorities.
Mark Jensen, CEO of AREC and ReElement, said the partnership with TEP “provides the capital needed to scale our environmentally responsible refining technology and strengthen the U.S. supply chain for critical minerals.” He added that the company is focused on delivering the first commercial scale of the platform and positioning ReElement for a future spin‑off.
The move signals a strategic pivot away from legacy coal operations toward a technology‑driven critical‑minerals business. By expanding the Marion facility, AREC aims to generate revenue streams that could offset its current cash burn and support its long‑term growth trajectory in the rare earth and lithium markets.
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