American Resources Corporation (AREC), through its subsidiaries ReElement Technologies and Electrified Materials, has initiated a strategic partnership with Blackion LLC to develop a fully domestic supply chain for lithium-ion battery recycling in the United States. The collaboration focuses on producing battery-grade lithium carbonate from recycled lithium iron phosphate (LFP) battery materials, aiming to enhance supply chain resilience and reduce dependence on foreign refining resources.
This initiative comprises a Recycling Services Agreement between Electrified Materials and Blackion and a Memorandum of Understanding (MOU) between ReElement and Blackion. Together, these agreements establish a shared revenue model and commit to keeping critical processing operations, including refining, entirely within U.S. borders. Electrified Materials will handle logistics, battery disassembly, and storage using Blackion’s global network of over 150 partners dedicated to battery sourcing and sustainability. ReElement will then apply its proprietary technology to convert the recovered black mass into high-purity lithium carbonate, emphasising environmentally sustainable methods.
Mark Jensen, CEO of ReElement Technologies, highlighted the strategic importance of retaining recycled battery materials within the United States. He noted to industry observers that the partnership could significantly support both commercial sectors and national defence by ensuring a reliable supply of battery-grade materials. Douglas Luciano, Executive Director of Blackion, underscored the collaboration’s potential to provide the market with cost-effective, sustainable lithium supply solutions.
This move aligns with the objectives outlined in the March 2025 Executive Order issued by the U.S. government, which stresses the urgency of developing robust domestic capabilities for the collection, recycling, and refining of critical battery materials. Such policies aim to enhance the resilience of the country’s critical mineral supply chains amid growing global supply uncertainties.
Beyond this partnership, there are parallel developments in the U.S. battery recycling landscape. For instance, ReElement Technologies and American Metals LLC have signed a separate Memorandum of Understanding with LOHUM Cleantech Ltd, India’s largest producer of sustainable critical minerals. This agreement focuses on establishing the first fully integrated battery recycling, repurposing, and critical materials production facility in the U.S. The planned 15.5 GWh capacity plant, backed by a $30 million initial investment, is projected to generate over 250 green jobs and support the supply of materials for more than 315,000 electric vehicles annually. This facility marks a significant step towards a circular and domestic supply chain for critical battery materials.
Additionally, American Resources Corporation has recently achieved other milestones, including a $150 million Bond Purchase Agreement to develop a critical mineral refining facility. This facility will also target rare earth elements used in renewable energy sectors, such as neodymium magnets from decommissioned wind turbines, highlighting the company’s broader commitment to sustainable and circular supply chains.
Together, these efforts by American Resources Corporation and its subsidiaries represent a concerted push to secure the United States’ position in the burgeoning battery and clean energy markets by fostering homegrown processing capabilities. This comes at a pivotal time when global demand for battery materials is escalating due to rapid electric vehicle adoption and renewable energy expansion, underscoring the critical need for sustainable, domestic production chains.
Source: Noah Wire Services
