- American Resources Corporation (AREC, Financial) and ReElement Technologies have extended their antimony refining contract from 5 to 10 years.
- ReElement will process approximately 500 metric tons of stibnite ore monthly, projecting annual tolling revenues exceeding $29 million.
- The U.S. faces a supply gap as China bans antimony exports, boosting the importance of AREC's domestic capabilities.
American Resources Corporation (AREC) and its portfolio company, ReElement Technologies, have announced the extension of their antimony refining agreement from five to ten years. This strategic move underscores their position as a key domestic supplier amid geopolitical tensions and China's export ban on antimony to the U.S., set to take effect from September 2024.
ReElement Technologies has demonstrated the capability to refine stibnite ore into high-purity antimony(III) sulfide, achieving purity levels above 99.7%. With an initial processing capacity of approximately 500 metric tons per month, the venture is expected to generate annual tolling revenues exceeding $29 million. This positions AREC to meet the rising demand in both defense and commercial markets, where refined antimony is crucial for ammunition, missiles, flame retardants, batteries, and solar panels.
The global market for Antimony(III) oxide, valued at $852 million in 2023, is projected to expand to $1.43 billion by 2034, reflecting an annual growth rate of 4.9%. This growth trajectory aligns with AREC's long-term revenue goals and its ability to scale operations in response to market demands.
The extension comes at a critical point as the U.S. seeks to bolster domestic supply chains for strategic materials, particularly in the defense sector. ReElement's facility in Marion, Indiana, will serve as the initial production site, with plans to explore additional locations to mitigate supply chain risks and accommodate potential capacity expansions.
