The Inflation Reduction Act (IRA) Marks a New Era in Climate Policy With $369 Billion in Incentives To Navigate the Energy Transition
IRA Provisions Aim To Bolster Domestic Critical Mineral Production and Is Highly Aligned With the Company's ReElement Technologies' Accomplishments
FISHERS, IN / ACCESSWIRE / August 18, 2022 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today applauds the Inflation Reduction Act's support for a more resilient, domestic supply chain for critical minerals and highlights how the bill is highly aligned with its industry-leading accomplishments.
Mark Jensen, CEO of American Resources commented, "We believe it is highly important for the United States to develop a resilient and sustainable supply chain of critical and rare earth elements to significantly reduce the dependency on foreign nations. Our monumental milestone of producing the ultra-high pure and separated rare earth magnet elements neodymium (Nd), praseodymium (Pr) and dysprosium (Dy) on a commercial scale using our next-generation chromatographic separation process technology is a massive leap forward for both our Company and our nation. This environmentally-safe, low-cost and flexible technology will redefine how critical raw materials are sourced and processed. Additionally, we applaud the federal government for the provisions within the Inflation Reduction Act that aim to support the transition towards a broader electrified economy, and at the same time supports U.S. manufacturing. While the critical mineral requirements within the bill credits are aggressive and stringent, we are confident our ReElement Technologies division is in a leading position to simultaneously help recipients achieve certain standards and support the buildout of our own critical and rare earth mineral processing facilities."
The Inflation Reduction Act, among other things, will:
- Extend a, now uncapped, $7,500 per new clean vehicle tax credit for vehicle that meet strict critical mineral and battery sourcing requirements;
- Require at least 40% of the value of critical minerals contained in the clean vehicle's battery be processed in the United States, in a country where the U.S. has an established free trade agreement or recycled in North America by 2024;
- Require that the minimum critical mineral sourcing requirements for clean vehicle batteries increase 10% each year until 80% meet the same requirement by 2028;
- Establishes an advanced manufacturing tax credit that amounts to 10% of the costs incurred to produce applicable critical minerals including both battery and magnet minerals; and
- Extends the Advanced Energy Project Credit to include projects which re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials.
The Company's subsidiary, ReElement Technologies previously announced the commencement of its Noblesville, Indiana rare earth and battery mineral processing facility whereby achieving groundbreaking success in producing greater than 99.5% pure isolated dysprosium (Dy), neodymium (Nd) and praseodymium (Pr) / neodymium (Nd) rare earth elements from end-of-life rare-earth permanent magnets. These end-of-life magnets are considered super-grade or highly concentrated feedstocks of the rare earth elements essential in high-efficiency motors required in electric vehicles as well as defense and technology applications. The Company is on track to have its second production train commercially operating in the 4Q of 2022, which will recover and re-purify active cathode material from lithium-based batteries. ReElement Technologies, through its patented process and technology, recovers and re-purifies all of the high value components of lithium-based batteries for resale including the lithium (Li), cobalt (Co), nickel (Ni), manganese (Mn), graphite and carbon black.
American Resources continues to focus on running efficient streamlined operations in being a new-aged supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable of ways, while also helping the world achieve its goals of carbon neutrality. By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, American Resources Corporation works to maximize value for its investors by positioning its large asset base to best fit a new-aged economy, while being able to scale its operations to meet the growth of the markets it serves.
About American Resources Corporation
American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
PR Contact
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Investor Contact:
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Todd McKnight
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Company Contact:
Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext. 0
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SOURCE: American Resources Corporation