AREC Stock: Rare earth is buzzing, bringing American Resources to the spotlight

AREC Stock: Rare earth is buzzing, bringing American Resources to the spotlight

Rare earth mining is gaining traction and American Resources (AREC) is one company that is taking advantage of rare earth mining. AREC stock surged over 40% after buzz about the company’s rare earth mining.

Today the company announced that it will build an electrolyte cell rare earth processing plant, this facility will use technology and patents acquired by Ohio University and partnerships with sponsored research programs.

This facility represents a novel approach for the revalorization of coal, coal waste, and coal byproducts such as fly ash, utilizing Coal Electrolytic Cell (CEC) technology for the production of REE concentrate, carbon, purified fly ash and hydrogen.

The design is based on successful analysis utilizing electrolysis of fly ash that was from a representative Ohio facility with particle size less < 75μm leading to the production of hydrogen in the cathode of the cell and the extraction of 65% Yttrium (Y), 59% Dysprosium (Dy), and 76% Ytterbium (Yb).

The design of the initial facility has a total capex of less than $1.0 million and is in the form of a mobile application that can be transported from internal and external sites to process and evaluate the specific fly ash and coal-based feedstocks at each location. The facility will enable the Company to determine the specific economics of each feedstock site and the revenues that will be generated from the critical and rare earth elements, the fly ash-to-concrete market, and the recovered carbon and the hydrogen generated during the process.

Upon determination of each site’s economics, the Company will potentially build a local processing facility at certain sites to further expand the revenue base. The Company is in discussions with a number of external sites that have legacy landfills that can be reprocessed to clean up the environment and act as additional feedstocks to the Company’s internal carbon-based feedstocks.

What is rare earth?

The rare earth elements (REE) are a set of seventeen metallic elements. These include the fifteen lanthanides on the periodic table plus scandium and yttrium. Rare earth elements are an essential part of many high-tech devices.

These resources are used in many devices that people use every day such as computer memory, DVDs, rechargeable batteries (including electric vehicles), cell phones, catalytic converters, magnets, fluorescent lighting, airplanes, tourbines and much more.

According to Valuates Reports, the global Rare Earth Elements market size is projected to reach USD 3757.7 Million by 2026, from USD 2664.5 Million in 2020, at a CAGR of 5.9% during the Forecast Period 2021-2026.

Global shift towards clean energy with rising demand for electric and hybrid vehicles is propelling the growth of a rare market.

It is expected that the growing demand for electric vehicles to minimize carbon-dioxide emissions would propel the growth of rare earth elements market size. Neodymium and praseodymium are majorly used for producing permanent magnets used in electric and hybrid vehicles. Neodymium magnets have an excellent coercive force and flux density. The high coerciveness and excellent flow retention capacities make it highly desirable for use in electric vehicles worldwide.

As the sales of automotive increases, the demand for catalytic converters also increases. A catalytic converter is a device that uses a catalyst to convert harmful compounds into harmless ones. The catalytic formulation consists of three key components: precious metals (platinum, palladium, rhodium), alumina, and rare-earth-based materials that enhance the catalytic activity of metals. This increasing demand for catalytic converters is expected to increase the growth of rare earth elements market size.