American Resources Corporation AREC, through its stake in ReElement Technologies Corporation, has announced the expansion of its operational equipment to address the rising demand for rare earth oxides sourced within the United States. Leading this effort is ReElement, which is dedicated to establishing a reliable and secure domestic supply chain for critical minerals. Utilizing a scalable, highly efficient and adaptable refinery platform, ReElement delivers both light and heavy magnet-grade rare earth oxides, battery materials and key defense-related minerals such as antimony, doing so more quickly and efficiently than conventional processes.

The latest equipment expansion highlights the modular and scalable characteristics of ReElement's refining technology, allowing for swift and flexible growth to meet the surging demand for ultra-pure, domestically produced rare earth oxides. Phase 2 of the expansion from design to commissioning was completed in less than three weeks and has effectively doubled the facility's output of finished rare earth oxides. A third phase is already in progress, with equipment expected to be delivered within six to eight weeks. Once operational, Phase 3 is projected to triple production compared to Phase 2. This additional capacity will significantly boost the facility’s daily output of essential rare earth elements such as neodymium (Nd), praseodymium (Pr), dysprosium (Dy), and terbium (Tb).

Through investment in and utilization of its cutting-edge refining technology, the Noblesville facility is able to quickly scale operations to meet the exceptional demand from a rapidly expanding customer base, ReElement noted. The company remains dedicated to advancing innovation and consistently strives to push the limits of engineering and operational excellence in its ongoing efforts to refine critical minerals.

AREC stock has lost 3.9% in the past year compared with the 13.2% decline of the industry.

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AREC’s Rank & Key Picks

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

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Idaho Strategic Resources, Inc. IDR and ArcelorMittal S.A. MT

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 125.6% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Idaho Strategic Resources’ current-year earnings is pegged at 78 cents. IDR, carrying a Zacks Rank #2, surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with an average earnings surprise of 77.5%. The company's shares have rallied 98.9% in the past year.

ArcelorMittal, which currently carries a Zacks Rank #2, beat the consensus estimate in three of the trailing four quarters, while missing once. In this time frame, it has delivered an earnings surprise of roughly 4.1%, on average. The company's shares have rallied 6.9% in the past year.

 

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