Indiana plant funded for Rare-Earth Magnet Production

ReElement Technologies LLC, a Fishers, Indiana-based subsidiary of American Resources Corp. recently announced a $1.4 billion partnership with the U.S. Department of War and North Carolina's Vulcan Elements. The primary goal is to help increase the domestic production of rare-earth magnets, in an effort to address vulnerabilities in supply chains for critical materials used in defense and high-tech industries.

The partnership involves two substantial loans from the U.S Department of War's Office of Strategic Capital (OSC): $620 million allocated to Vulcan Elements and $80 million to ReElement Technologies. Both are matched by private capital and The Department of War will hold warrants in both Vulcan Elements and ReElement Technologies, providing the government with a strategic stake. Additionally, the Department of Commerce will receive $50 million in federal incentives and an equity stake in Vulcan Elements.

The collaboration aims to establish a fully integrated magnet manufacturing facility capable of producing approximately 10,000 metric tonnes of neodymium iron boron (NdFeB) magnets annually. Vulcan Elements will focus on producing these magnets, while ReElement will refine and process rare earth elements, including recycling from end-of-life magnets and batteries’ including those found in electric vehicles, wind turbines, power tools, and high-efficiency motors.

ReElement operates from a 425,000-square-foot, former RCA Thomson plant in Indiana, where it has invested over $100 million to convert the facility into a modern refinery for rare earths and battery materials, according to Indiana Business. The site spans 42 acres and is expected to generate employment for more than 300 people. ReElement’s expertise in recycling includes extracting lithium, cobalt, nickel, and manganese from used batteries and manufacturing waste, contributing to building a sustainable, circular supply chain for critical minerals.

This partnership comes amid a broader push to reinforce domestic manufacturing and critical mineral supply chains, with a strategic effort to reduce dependence on foreign sources and bolster U.S. industrial security and technological competitiveness. 

“Now more than ever, we remain focused on execution and performance, so that we can deliver a capability that the nation urgently needs” said CEO of Vulcan Elements, John Maslin in a statement. ReElement CEO Mark Jensen, meanwhile, highlighted the company's innovative refining platform, stating that it “is designed to address midstream processing and refining challenges for rare earth and critical minerals … With support from the United States Government, we are positioned to deliver the secure, scalable, and sustainable solutions that our nation's supply chain urgently needs."

Overall, this initiative helps establish a self-reliant rare-earth magnet industry in the U.S., while creating jobs, advancing technological innovation, and reducing reliance on overseas supply sources.