American Resources, along with its portfolio company ReElement Technologies, has announced the expansion of their antimony refining contract, aiming to enhance the supply of ultra-pure antimony products for the US defence and commercial industries.
The extended ten-year agreement, with automatic renewals, is set to generate initial tolling revenues exceeding $29m annually.
Under the revised terms, ReElement will process stibnite ore into ultra-pure antimony (III) sulphide or antimony (III) oxide at its Indiana facilities.
These compounds are critical for ammunition, missiles, flame retardants, batteries and solar panels applications.
The global market for antimony (III) oxide, valued at approximately $852m in 2023, is expected to grow significantly by 2034.
The partnership is set to commence with around 500 tonnes per month of stibnite ore for processing, with the potential to increase volumes based on market demand.
American Resources and ReElement Technologies CEO Mark Jensen said: “Through close collaboration with our partners, we collectively recognised that extending the contract duration delivers greater value for all stakeholders – including our commercial and defence customers.
“Antimony plays a critical role in a wide range of applications, from lead-acid batteries to munitions, and represents a highly economical product for us to refine using our advanced, proven technologies.
“As we ramp up initial antimony refining capacity at our Marion, Indiana facility – and evaluate additional sites both domestically and internationally – we are confident in our ability to scale this agreement and expand into additional feedstock opportunities.”
The expansion comes at a critical time following China’s announcement in December 2024 of a ban on exports of essential minerals including antimony to the US.
This move has increased trade tensions and highlighted the importance of securing domestic sources for these strategic materials, according to the company.
In a related development, ReElement Technologies partnered with Novare Holdings in February to develop refining facilities across Africa, with a $100m investment.
This initiative marks a significant step towards establishing Africa’s first critical and rare earth element refining facility, leveraging ReElement’s proprietary technology to produce high-purity lithium carbonate and rare earth oxides.
