American Resources(US:AREC) Xin Lang Cai Jing·2025-08-27 08:13Core Viewpoint - The United States is strengthening its domestic rare earth industry chain, with Vulcan Elements signing a commercial-scale agreement with ReElement Technologies to accelerate the expansion of domestic rare earth magnet manufacturing capabilities [1][2]. Group 1: Company Developments - Vulcan Elements aims to localize the magnet supply chain in collaboration with ReElement Technologies, contributing to the U.S. economic vitality and military advantage [2]. - Vulcan Elements, a high-performance rare earth magnet manufacturer based in North Carolina, was established in 2023 and currently has fewer than 50 employees [2]. - ReElement Technologies focuses on the upstream of the rare earth industry chain, refining rare earth materials into high-purity single rare earth oxides for downstream manufacturers like Vulcan Elements [2][3]. Group 2: Industry Context - Rare earth elements are critical materials for electric vehicles, renewable energy, and national defense, with high economic value [4]. - The U.S. has historically been dependent on imports for rare earth supplies, with known reserves of only 1.9 million tons compared to China's 44 million tons, which accounts for nearly half of global reserves [5]. - The U.S. lacks sufficient processing and refining capabilities, with China holding 99% of the global market share for heavy rare earth processing [8]. Group 3: Technological Advancements - ReElement Technologies employs a patented chromatographic refining method, which allows for the production of rare earth oxides with purity levels exceeding 99.95% [9]. - The chromatographic method is more efficient than traditional solvent extraction methods, offering higher separation efficiency and lower chemical and energy consumption [10][11]. Group 4: Financial and Strategic Moves - Vulcan Elements recently completed a $65 million Series A financing round, which will enable it to scale magnet production significantly in the coming years [16][17]. - ReElement Technologies received a letter of intent for $150 million in financing from the Export-Import Bank of the United States to support its refining projects [17]. - The U.S. Department of Defense has invested in domestic rare earth production, acquiring convertible preferred shares in MP Materials, the largest rare earth producer in the U.S. [14].