American Resources (AREC) said Wednesday that its ReElement Technologies unit has signed a memorandum of understanding with Principal Mineral to jointly develop advanced rare earth production capability in the US.

The partnership is looking to co-locate operations at one of several possible sites, including ReElement's existing Marion, Indiana, supersite and Principal Mineral's critical minerals campus in Camden, South Carolina, with more locations under consideration, American Resources said.

ReElement will produce high purity separated rare earth products from both recycled and mined sources at the facility, while Principal Mineral will produce rare earth fluorides and metal, American Resources said.

Financial terms of the partnership were not disclosed.

American Resources shares were up 4% in recent Wednesday premarket activity.