en.Wedoany.com Reported - The U.S. government has committed $25 million (A$38.3 million) to ReElement Technologies to expand domestic refining capacity for rare earths and other critical minerals.

The funding is provided by the Department of War's Economic Defense Unit (EDU) in collaboration with the Office of the Under Secretary of Defense for Acquisition and Sustainment.

ReElement Technologies, a subsidiary of American Resources (NASDAQ: AREC), will use the funds to purchase equipment, install it, and supplement working capital to expand its critical mineral refining facility in Marion, Indiana.

The company has developed a patented chromatography-based process capable of refining various feedstocks, including recycled materials, mine waste, and primary ore, into high-purity critical mineral products.

Michael Cadenazzi, Assistant Secretary of Defense for Industrial Base Policy, stated that strengthening domestic refining capacity for rare earth elements and other critical minerals is a national security priority, and this investment will help rebuild the domestic supply chain from mine to magnet to support the U.S. industrial base.

The latest funding follows an $80 million (A$122.6 million) investment announced by the Pentagon in November last year. The project will focus on processing scrap magnets and other recycled materials into high-purity rare earth oxides, yttrium, gadolinium, germanium, and gallium. The department stated that these materials are critical for advanced defense systems, aerospace applications, and secure communications.