American Resources scores $25M Department of War investment

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American Resources ( AREC ) up 2.2% pre-market Tuesday after saying its minority holding ReElement Technologies was awarded a $25M investment through the U.S. Department of War's Industrial Base Fund to expand domestic critical minerals refining capacity at ReElement's refining facility in

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ReElement Technologies, a subsidiary of American Resources, has secured a $25 million investment from the U.S. Department of Defense's Industrial Base Fund. The funds will be used to expand domestic critical mineral refining capabilities, leading to a 2.2% pre-market rise in AREC shares. This indicates the U.S. government's supply chain localization strategy is intensifying, likely driving growth in related industries.

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The $25 million infusion from the Department of Defense marks a strategic move to decouple critical mineral processing from foreign reliance. By fostering domestic infrastructure, ReElement Technologies is positioned to play a pivotal role in the U.S. critical mineral supply chain. For investors, this signals robust government backing for domestic refining, which should translate into long-term scalability and reduced geopolitical risks for American Resources.

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