American Resources Details Partnership with Heritage
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Fishers-based American Resources Corp. (Nasdaq: AREC) has announced a partnership between its subsidiary, American Rare Earth LLC, and HG Ventures LLC, the venture capital investment arm of Indianapolis-based The Heritage Group. The company says the effort will put the partners on the path to becoming the first and lowest-cost producer of domestically-sourced, purified and sustainable battery and magnet metals.
American Rare Earth uses its technology to isolate and purify rare earth elements and battery metals from a variety of feedstocks, such as lithium-ion batteries that have reached their end of life.
The company is currently building a rare earth and critical element isolation and purification facility in Noblesville, which it says will be the first of its kind on a commercial scale. The facility is expected to be operational in the first half of the year.
American Resources Corp. Chief Executive Officer Mark Jensen says the partnership with HG Ventures will be a game changer for the growth of its rare earth and battery metals division.
“We both agree that creating a closed-loop and circular supply of these increasingly important materials in a cost effective and environmentally safe way will enable the United States to compete on a global basis,” Jensen said in a news release. “This partnership will allow us to further incorporate value-added partners throughout the supply chain more expeditiously and ensures a successful pathway for our shared vision.”
American Resources says Heritage’s experience in material science, assets and existing relationships will help accelerate the company’s process. It will also provide Heritage and its affiliates the ability to market the technologies to customers.
“We look forward to partnering with American Rare Earth to expand production of rare earth elements and critical metals by recycling electric motors, batteries and other e-waste, which will help address U.S. supply chain and sustainability challenges,” said Jonathan Schalliol, director at HG Ventures. “As demand for batteries and smart electronics soars, this partnership aims to help drive growth in the U.S. raw materials market to expand our country’s domestic manufacturing capabilities. The U.S. has the opportunity to lead in closed-loop and circular material supply, and it starts with this type of cross-sector collaboration.”
As part of the partnership, Heritage will receive a minority ownership stake in American Rare Earth, with the option to purchase up to $50 million of American Rare Earth’s equity interest at $300 million, pre-money valuation.