American Resources Corp’s ReElement Technologies announced a $1.4 billion partnership with the U.S. Department of War’s Office of Strategic Capital (OSC) and Vulcan Elements. The package includes a $620 million loan to Vulcan Elements, an $80 million loan to ReElement Technologies, and warrants for the Department of War in ReElement Technologies. The financing will support advanced rare‑earth element separation, metallization, and magnet manufacturing at both partners’ facilities.
The $1.4 billion package is backed by the “One Big Beautiful Bill Act,” which authorizes government lending for critical‑minerals production. Private capital matching the government loans totals $1.2 billion, sourced from a consortium of venture funds and strategic investors that specialize in critical‑materials technology. The Department of War’s warrants are valued at approximately $200 million, with terms that vest over a five‑year period, though the exact strike price and vesting schedule have not been disclosed.
The partnership aims to scale domestic NdFeB magnet production to 10,000 metric tonnes, a target that would significantly narrow the U.S. supply‑chain gap for critical rare‑earth magnets and strengthen national‑security‑relevant manufacturing capabilities. Vulcan Elements will use the funding to expand its onshore production capacity, while ReElement Technologies will deploy its separation technology to increase the supply of high‑purity rare‑earth feedstock.
American Resources Corp has historically faced significant debt and net losses, and this partnership represents a key step in its turnaround strategy. The company’s management highlighted that the financing will provide the liquidity needed to accelerate its critical‑minerals portfolio and reduce reliance on foreign supply chains.
The Office of Strategic Capital’s involvement underscores the strategic importance of the deal, as the OSC was created to attract and scale private investment into national‑security priorities and critical technology supply chains. The partnership aligns with broader U.S. policy goals to reduce dependence on China for rare‑earth materials and to secure a resilient domestic supply chain for defense and commercial applications.
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