LOHUM, ReElement & American Metals Come Together to Set up an Integrated Li-ion Battery Materials Processing Facility With an Investment North of $30M

Rhea-AI Summary

American Resources (NASDAQ: AREC) announces a significant development: India's LOHUM Cleantech has signed an MOU with ReElement Technologies and American Metals to establish the United States' first fully integrated battery recycling and critical material production facility. The joint venture will invest $30 million to create a 15.5 GWh facility, generating 250 green jobs. The facility aims to supply over 315,000 electric vehicles annually with recycled materials.

The integrated facility will cover the entire battery lifecycle, from testing to recycling and refining, producing critical materials with purity levels exceeding 99.5%. Initially located at the Marion Advanced Technology Center in Indiana, the venture plans to expand to other locations. This collaboration is expected to significantly reduce capital expenditure, environmental impact, and operational costs in battery material processing.

Positive

• $30 million investment in a new 15.5 GWh integrated battery recycling facility
• Creation of 250 green jobs
• Potential to supply over 315,000 electric vehicles annually with recycled materials
• Production of critical materials with purity levels exceeding 99.5%
• Reduction in capital expenditure, environmental impact, and operational costs for battery material processing

Negative

• None.

Insights

Clean Energy Analyst

This joint venture marks a significant milestone in the U.S. battery recycling and critical materials sector. The $30 million investment to create a 15.5 GWh integrated facility is a major step towards establishing a domestic, circular supply chain for battery materials. The partnership's ability to produce high-purity (>99.5%) critical materials could significantly reduce U.S. dependence on foreign sources.

The project's potential to supply over 315,000 EVs annually is substantial, addressing a critical need in the growing electric vehicle market. The creation of 250 green jobs aligns with the broader trend of clean energy employment growth. For investors, this venture represents a strategic positioning in the rapidly expanding battery recycling market, which is important for sustainable EV adoption.

The collaboration between U.S. and Indian companies also highlights the growing international cooperation in clean tech, potentially opening doors for future cross-border investments and technology transfers in the sector.

Materials Science Expert

The technological synergy in this joint venture is particularly noteworthy. ReElement's modular and adaptable processing technology, combined with LOHUM's expertise in sustainable critical minerals production, creates a powerful platform for innovation in battery material recycling and refinement.

The ability to achieve >99.5% purity in critical materials is a significant technical achievement, meeting or exceeding industry standards for battery-grade materials. This high-purity output is important for maintaining performance in next-generation batteries and could command premium pricing in the market.

The integrated approach, covering the entire value chain from battery testing to material production, offers potential for significant cost efficiencies and reduced environmental impact. By eliminating substantial capital and operational expenditures typically associated with traditional separation and purification processes, this venture could achieve a competitive edge in the battery materials market.

Investment Analyst

For American Resources (NASDAQ: AREC), this joint venture represents a potentially transformative opportunity. With a current market cap of just $57.4 million, the $30 million investment into this project is substantial and signals a major strategic shift towards high-growth sectors.

The venture's focus on creating a domestic ecosystem for recycled, high-purity lithium aligns well with current U.S. policy priorities, potentially positioning AREC to benefit from government incentives and support in the critical minerals sector. The scalability of the project, with plans to expand beyond the initial Indiana location, offers significant growth potential.

However, investors should note that executing such a large-scale, technologically complex project carries risks. The company's ability to manage this expansion while maintaining financial stability will be crucial. Additionally, the success of this venture could attract larger competitors into the space, potentially impacting long-term profitability.

FISHERS, Ind.--(BUSINESS WIRE)-- American Resources Corporation (NASDAQ: AREC) shares a milestone move: India's largest producer of sustainable critical minerals LOHUM Cleantech Ltd has signed an MOU with U.S. pioneers in modular, adaptable, and circular magnet-grade & battery-grade mineral processing technology - ReElement Technologies Corporation and American Metals LLC. The MOU marks the companies' initiation of a Joint Venture for establishing United States' first fully integrated battery recycling, repurposing, and critical material production facility. The 15.5 GWh facility will be set up with an initial investment of US$30 Million, and lead to the creation of 250 green jobs. The partnership is expected to initially supply over 315,000 electric vehicles annually with continued growth based on feedstock availability.

The integrated end-to-end battery & critical minerals lifecycle management facility will host the entire value chain from battery cell testing and segregation for second-life energy storage applications to recycling, mineral refining, engineered materials, and battery-grade products. The facility will produce critical materials with purity levels greater than 99.5%, which can then circulate in the U.S. domestic battery ecosystem.

The initial operating location will be at the Marion Advanced Technology Center in Indiana, and expand to other locations as determined by the joint venture parties. The joint venture will create a domestic ecosystem of recycled, high-purity lithium for developing North America's lithium-based battery manufacturing supply chain. The facility powered by LOHUM’s and ReElement’s capabilities will be able to eliminate a significant amount of capital expenditure, physical footprint, environmental impact, and associated operational expenditure needed for the separation and purification of battery materials.

Addressing the development, Rajat Verma, Founder & CEO of LOHUM expressed:- “As LOHUM expands its presence in North America, we welcome this opportunity to partner with ReElement and American Metals, companies that share LOHUM's goals of 'making battery materials last forever'. We believe the joint venture will be instrumental in building resilient critical material supply chains in the U.S. that can sustain themselves through circularity. This is an inspiring development in U.S.-India technology collaboration through market entities.”

Speaking on the joint venture, Mark Jensen, Chairman of American Metals and ReElement Technologies, stated- “We have been working with LOHUM to figure out how to leverage our unique capabilities and world-leading technologies at ReElement along with the innovative and scaled up approach to critical mineral’s recycling and refining that LOHUM has established. We are pleased that ReElement and LOHUM are partnering in a joint venture to leverage both ReElement’s and LOHUM’s vast experience in recycling lithium-ion batteries.”

About LOHUM Cleantech Ltd.

LOHUM is India’s largest producer and processor of sustainable critical minerals, and the only integrated battery recycling and reuse company in the world. Recognized as ‘The Most Innovative Company of the year 2022’ by The Confederation of Indian Industry (CII), LOHUM is committed to making battery materials last forever. An engine of innovation, LOHUM’s R&D focus is driving sustainable climate technology. LOHUM’s NEETM™ Li-ion batteries material recycling and extraction technology yields top-quality materials and produces zero waste. Its DETX™ battery price index makes it easy to determine accurate prices of battery materials and provides ‘future’ buyback prices. For more information, visit www.lohum.com or connect on LinkedIn and X.

About ReElement Technologies Corporation

ReElement Technologies Corporation 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 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, X, and LinkedIn.

About American Resources Corporation

American Resources Corporation is a next-generation, environmentally & socially responsible supplier of high-quality raw materials to the new infrastructure market. 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, X, and LinkedIn.

About American Metals LLC:

American Metals LLC, currently a subsidiary of American Resources Corporation, has established a full circular supply chain utilizing its innovative recycling solutions for end-of-life battery and magnet material with an offtake partner bringing products back to battery and magnet grade as well as copper, aluminum and ferrous metals. American Metals LLC has executed a business combination with AI Transportation Acquisition Corp, (Nasdaq: AITR) For more information visit ametalscorporation.com or connect with the Company on Facebook, Twitter, and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240926572025/en/

Sachin Maheshwari

96111 00484

sachin.maheshwari@lohum.com

Source: LOHUM Cleantech Ltd.

FAQ

What is the investment amount for the new battery recycling facility announced by AREC?

The initial investment for the new battery recycling facility announced by American Resources (NASDAQ: AREC) is $30 million.

How many electric vehicles can the new AREC facility potentially supply annually?

The new facility announced by American Resources (NASDAQ: AREC) is expected to initially supply over 315,000 electric vehicles annually with recycled materials.

Where will the new battery recycling facility announced by AREC be located?

The initial operating location for the new battery recycling facility announced by American Resources (NASDAQ: AREC) will be at the Marion Advanced Technology Center in Indiana.

What is the purity level of critical materials produced at the new AREC facility?

The new facility announced by American Resources (NASDAQ: AREC) will produce critical materials with purity levels greater than 99.5%.