Why Arec Stock Surges 44% Today
ReElement Technologies, a division of American Resources Corporation (AREC), just hit a big milestone — it scored a $150 million pre-money valuation in a private investment round in the U.S. Part of that includes a $20 million Convertible Note, and about 60% of it is already funded, which shows investors are pretty confident in where the company’s headed. As of April 14, the AREC stock is heading to $1 mark.
To step up its game, ReElement just rolled out some brand-new, large-scale equipment at its Indiana sites. They’ve added a third chromatography unit and a Bipolar Electrodialysis Unit (BPED) — both aimed at making their production process faster and more scalable, especially for refining rare earth and critical minerals.
This couldn’t come at a better time, since China recently slapped export restrictions on several key rare earth elements like samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. That’s where ReElement really stands out — it’s the only U.S. company right now that can separate and purify these heavy rare earth elements. That puts them in a strong spot to help fix global supply chain issues for these important materials.
Mark Jensen, the CEO of AREC, stressed how important it is to build a reliable U.S.-based supply of these minerals — not just for business, but for national security too. He also mentioned that the new tech at their Indiana site will help cut down on capital costs, which is a big plus when it comes to financing.
Looking forward, AREC might sell off a piece of its stake in ReElement to raise some extra cash and boost profits — all without having to dilute their shares. That could be a smart move, especially with the growing demand for U.S.-produced rare earths and critical minerals.
