American Resources stock surged 16% following the announcement of a $1.4 billion partnership with the U.S. Department of War’s Office of Strategic Capital (OSC) to develop a domestic rare earth magnet supply chain.

The partnership includes an $80 million loan to ReElement and a $620 million loan to its collaborator Vulcan Elements, both matched by private capital. As part of the agreement, the U.S. Department of War will receive warrants in ReElement Technologies Corporation, a holding of American Resources Corporation.

The funding comes from the One Big Beautiful Bill Act, passed by Congress and signed by President Trump in July 2025, which provides up to $100 billion in lending authority for critical minerals production and related projects.

"We are honored to have the support of our government and remain fully committed to meeting the call of our nation," said Mark Jensen, Chairman and CEO of ReElement Technologies. "With support from the United States Government, we are positioned to deliver the secure, scalable, and sustainable solutions that our nation’s supply chain urgently needs."

The partnership aims to scale to 10,000 metric tonnes of NdFeB magnet production capability, addressing a significant gap in the U.S. supply chain for these critical materials used in defense, clean energy, and high-tech applications.

John Maslin, CEO of Vulcan Elements, noted that the companies "already have a record of strong collaboration" and expressed commitment to delivering "a capability that the nation urgently needs."

The companies are currently finalizing diligence requirements with the Office of Strategic Capital.