American Resources and Principal Minerals Partner to Create Leading US Rare Earth Midstream Facility

American Resources Corp's subsidiary, ReElement Technologies, has signed a MOU with Principal Mineral Co. to develop the most advanced rare earth production capability in the US. The joint facility will integrate separation, fluoride production, and metallization processes under one roof, bolstering US defense readiness, strengthening supply chain resilience, and expanding domestic rare earth production capacity. The strategic integration aims to achieve greater efficiency, reduce costs, and eliminate processing bottlenecks that have historically slowed the US rare earth supply chain.

The United States is taking significant strides to bolster its rare earth supply chain resilience through strategic partnerships and investments. The latest move involves American Resources Corp's subsidiary, ReElement Technologies, signing a Memorandum of Understanding (MOU) with Principal Mineral Co. to develop the most advanced rare earth production capability in the U.S. This joint facility will integrate separation, fluoride production, and metallization processes under one roof, aiming to enhance efficiency, reduce costs, and eliminate processing bottlenecks [1].

The MOU signifies a critical milestone in the U.S. government's efforts to reduce dependence on foreign sources, particularly China, which has dominated the global rare earth processing market. The strategic integration of these processes under one roof is expected to significantly improve the supply chain's resilience and bolster defense readiness.

The Louisiana processing facility, developed by Ucore Rare Metals with support from the U.S. Department of Defense, is another key component of this strategy. This facility will process rare earth concentrates into high-purity individual rare earth oxides, addressing a significant bottleneck in Western supply chains [2].

The U.S. government is employing a multi-faceted approach to support rare earth supply chain development. Beyond the Pentagon's investment in Ucore's Louisiana facility, the Export-Import Bank of the United States has issued a letter of interest for a loan to support the development of Critical Metals' Tanbreez project in Greenland [2].

Rare earth elements are critical to national security due to their unique properties and applications in defense systems, renewable energy technologies, and consumer electronics. The U.S. recognizes the strategic importance of these materials and is actively working to ensure a secure and resilient supply chain.

The market conditions driving these developments include recent price volatility and disruptions in the supply chain, particularly following China's export restrictions in March 2025. These market dynamics have accelerated efforts to develop domestic capabilities and reduce reliance on foreign sources [2].

Challenges remain in establishing a complete domestic supply chain, including technical, financial, and market dimensions. However, the strategic partnerships and investments being made represent a significant step towards addressing these vulnerabilities and strengthening the U.S. rare earth supply chain.

References:
[1] https://discoveryalert.com.au/news/us-rare-earth-supply-chain-2025-strategic-partnership/
[2] https://discoveryalert.com.au/news/us-rare-earth-supply-chain-2025-strategic-partnership/