American Resources (AREC) Surges 3.24% on Landmark Rare Earth Partnership with POSCO

American Resources Corporation (AREC) surged 3.24% in morning trading, marking its third consecutive day of gains and a 45.80% rally over the past three days. The stock reached an intraday high of 13.51% above its previous close, hitting its highest level since October 2025. This sharp rebound follows a landmark partnership with POSCO International America, a subsidiary of South Korea’s POSCO, to expand U.S. rare earth refining capacity. The agreement includes long-term supply commitments for critical oxides used in EV magnets and wind turbines, with projected volumes exceeding 3,000 metric tons by 2030.

The collaboration accelerates AREC’s strategy to reduce reliance on Asian processing and establish a transparent supply chain. ReElement Technologies, AREC’s refining subsidiary, will leverage its chromatographic separation technology alongside POSCO’s industrial scale. The partnership also includes joint efforts to secure raw materials from mining concentrates and magnet waste, ensuring stable feedstock for U.S.-based refining operations. CEO Mark Jensen highlighted the move as a step toward building “resilient and sustainable” supply chains for the EV and clean energy sectors.

AREC’s momentum is further supported by $46 million in local incentives for its lithium-ion battery and rare earth recycling campus, announced in mid-September. The funding reduces capital costs and accelerates timelines for its circular economy initiatives, aligning with growing demand for sustainable materials. Separately, ReElement secured a $20 million equipment leasing facility to scale production at its expanded Noblesville, Indiana refinery. These developments reinforce the company’s role in U.S. critical mineral infrastructure, with refining capacity set to grow by 141% in 2025–2026.

Leadership additions, including Josh Hawes as an independent director and Ben Wrightsman as ReElement’s president, underscore confidence in the company’s long-term strategy. Both bring expertise in energy, mining, and EV technologies, aligning with AREC’s focus on clean energy materials. Meanwhile, ReElement’s membership in the Consortium for Rare Earth Technologies enhances its credibility in advancing U.S. innovation. Environmental initiatives, such as its low-carbon refining methods and ethical sourcing practices, further position the firm to meet ESG investor demands.

While recent earnings reports lack detailed financials, analysts note progress in refining operations and strategic positioning. H.C. Wainwright & Co. maintains a “Buy” rating, though FY2023 EPS estimates have been adjusted downward, reflecting cautious expectations. AREC’s stock performance remains tied to its ability to execute on partnerships, secure incentives, and scale production amid global demand for EV and clean energy components. Investors are likely to monitor its alignment with U.S. government priorities for domestic critical mineral supply chains in the coming months.