American Resources, through its subsidiary ReElement Technologies, has secured an anchor investment from South African investment firm Novare Holdings.
This strategic funding is set to catalyse a significant expansion of rare earth element refining operations in Marion, Indiana, US.
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The investment from Novare will unlock approximately $150m in financing, combining equity and debt, to enhance ReElement’s refining capabilities at its 42-acre site.
This site, formerly the RCA-Thomson television factory, is being transformed into an advanced manufacturing hub.
ReElement Technologies CEO and chairman Mark Jensen said: “This is a historic moment. With Novare as our anchor investor, we are not just expanding capacity – we are reshaping the global critical minerals supply chain.
“Together, we are proving that African capital can invest in America’s best technology, and that same technology can deliver lasting value back to Africa. The former RCA factory in Marion will once again power American industry, and Africa will rise as a full participant in high-value mineral processing.”
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By GlobalDataReElement’s patented chromatographic separation technology, developed in collaboration with Purdue University, enables the production of ultra-pure light and heavy rare earth oxides.
The new capital injection will allow ReElement to boost its output of these high-purity elements, which are crucial for advanced technologies in commercial and defence sectors.
Novare’s investment not only supports US technological growth but also sets a precedent for international partnerships that enhance economic opportunities between Africa and the US.
Furthermore, the partnership between ReElement and Novare extends to deploying the refining technology in Africa, where a significant investment from Novare will establish the continent’s first multi-mineral refining facility.
This initiative aims to shift from the traditional mining model to one that promotes local industrial development and secure supply chains for manufacturing-grade minerals.
ReElement’s refining platform, adapted from pharmaceutical purification technology by Purdue, offers a more efficient, scalable and environmentally friendly alternative to traditional solvent extraction methods.
The platform’s programmability allows for the handling of various feedstocks and minerals, facilitating rapid deployment and minimal environmental impact.
Novare Holdings CEO Ola Leepile said: “Novare is proud to stand behind ReElement as it scales groundbreaking American technology. This investment reflects our belief that African institutional capital has a powerful role to play in global industrial transformation.
“We are backing US innovation at home and abroad – supporting jobs and growth in Indiana and bringing long-overdue value addition and industrial development to the African continent.”
Furthermore, American Resources and ReElement Technologies have expanded their antimony refining contract to bolster the supply of ultra-pure antimony products for the US defence and commercial industries.
The extended ten-year agreement, with automatic renewals, is expected to generate more than $29m in annual tolling revenues.
