Advanced Magnet Lab, Inc. (AML) has developed a novel and innovative approach to manufacturing magnets that enables both rare earth and non-rare earth materials
FISHERS, IN / ACCESSWIRE / December 22, 2022 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced that it has executed its second rare earth oxide offtake agreement with Advanced Magnet Lab, Inc. ("AML") to provide AML high-purity raw rare earth elemental feedstock for their advanced, domestic magnet production. Concurrently with the offtake agreement, the Company has completed an initial strategic investment into AML to further advance the technology and commercialization. American Resources has led the round of investment into AML alongside a select number of strategic investors and insiders, and the investment is in the form of a promissory note that has the ability to convert into shares of common stock of AML at a fixed valuation.
AML has developed PM-Wire™, a unique technology for the design, manufacture and optimized performance of permanent magnets and their end-use applications. Magnets are at the heart of the products and applications essential to modern society. It is the magnets which enable electricity, manufacturing, processing of goods, movement of water, tools for construction and transportation. AML's technology provides significant value propositions for electrical machines, motors, and generators - all driven by magnets.
As the world evolves away from purely fossil fuel-powered transportation, the market for electric motors will continue to grow from US$26.2 Billion in the year 2020, to a projected US$39.1 Billion by 2026.
Mark Jensen, CEO of American Resources Corporation commented, "Having the pleasure of getting to know the management team at AML over the past year has only helped fortify our relationship and our confidence that AML possesses several unique and innovative methods of producing better, more efficient magnets using both rare earth elements and other materials. We are very excited to not only have AML be our second offtake partnership for our high purity (greater than 99.5%) rare earth oxides that we produce using our patented chromatography technology, but to also be able to be an investor in their innovative company. With this partnership, similar to our partnership with USA Rare Earth Magnets, we are collectively creating a domestic and sustainable permanent magnet production supply chain. The approach that AML has with its "PM-Wire™" magnet production had our attention from day one, along with the rest of the magnet industry, and having had the opportunity to spend time with the team has further exemplified our excitement for the opportunity to partner with them."
Combined with the offtake agreement between AML and ReElement Technologies, American Resources Corporation, the parent company of ReElement Technologies, concurrently has completed an initial investment into AML though a convertible debt structure that converts into equity of AML. This investment allows American Resources and AML to each participate in the anticipated growth of their respective businesses and technologies.
"AML's technology, PM-Wire™, enables for high volume and yield at a lower cost, with better flexibility in shapes and magnetization direction as compared to conventionally manufactured magnets," added Mark Senti, CEO of AML.
China dominates the conventional REE and magnet industry producing greater than 80% of the world's magnets due to vertical integration of cheap labor, raw materials and unsafe environmental standards from processing which has resulted in a "high-barrier to market-entry" for competitors Worldwide.
"Our goal and plan, combined with this novel technology, has been to create and foster an environment for vertical integration through partnerships here in the United States," added Wade Senti, COO of AML.
AML has recently completed and commissioned its state of the art, high-rate commercial production line, which is at the heart of the PM-Wire™ technology. This manufacturing line was funded with the support of National Security Innovation Capital (NSIC), which is part of the Defense Innovation Unit (DIU) of the U.S. Department of Defense.
AML and American Resources seek to disrupt this stronghold through the commencement of this relationship to develop and launch additional ventures for supporting the reshoring of a domestic supply chain for rare earths here in the United States.
About Advanced Magnet Lab, Inc. (AML)
Founded in 1995, AML is a recognized leader in the development of innovative magnet technologies and magnet-based applications. Today, AML executing on multiple product development programs including magnet materials and PM-Wire™ based motors and generators for industrial, aerospace and defense, including both rare earth and non-rare earth materials. This includes projects funded by large industry, U.S. Department of Energy and U.S. Department of Defense. For more information visit mitusmagnets.com or connect with AML on Facebook and LinkedIn.
About American Resources Corporation
American Resources Corporation (NASDAQ:AREC) is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About ReElement Technologies LLC
ReELEMENT Technologies LLC is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts to create a low-cost and environmentally-safe, circular supply chain. ReElement Technologies has developed its innovative and scalable "Capture-Process-Purify" process chain in conjunction with its licensed intellectual property including 16 patents and technologies and sponsored research partnerships with three leading universities to support the domestic supply chain's growing demand for magnet and battery metals. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
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SOURCE: American Resources Corporation