ReElement partners with US automaker for EV motor recycling By Investing.com



FISHERS, IN – ReElement Technologies Corporation, a subsidiary of American Resources (NASDAQ:) Corporation (NASDAQ:AREC), has announced a commercial partnership with a leading US automaker to refurbish electric vehicle (EV) components. The agreement, which follows a successful pilot program, aims to create a permanent, circular economy of rare earth magnets in the United States.

The deal involves recycling rare earth materials from EV motors and refining them into ultra-pure, magnet-grade rare earth oxides (REO), which are needed to make new magnets. This is expected to keep these important tools within the domestic supply chain for commercial and defense applications.

Mark Jensen, CEO of ReElement Technologies, expressed optimism about the partnership’s ability to provide rare earth resources to the US. about the change of power.

ReElement Technologies has previously demonstrated that it can produce 99.5% pure neodymium oxide from living magnets and can now recycle, separate, purify, and refine other magnetic metals to provide commercial home magnets. The company also partnered with Advanced Magnetic Labs Inc. is USA Rare Earth Magnets LLC and is negotiating with additional home magnet manufacturers.

The company’s chromatographic separation and purification technology is considered to be a cost-effective, safe, and environmentally friendly method compared to the methods used around the world for the separation and purification of the world’s most important materials. As manufacturing expands, this technology is expected to reduce the US’s dependence on foreign countries for these essential goods, creating a more circular approach to life cycle.

This article is based on a press release and highlights ReElement Technologies’ efforts to support domestic production of rare earth materials and batteries in the energy economy.

InvestingPro Insights

As ReElement Technologies Corporation, a subsidiary of American Resources Corporation (NASDAQ:AREC), moves forward with its commercial partnership to refurbish electric vehicle (EV) components, investors may see the company’s health and market valuations as interesting.

InvestingPro Data provides real-time metrics showing that AREC has a market capitalization of $109.58M and trades at a price-to-earnings ratio (P/E) of 12.22. Despite the company’s profit in the last twelve months, with basic and diluted earnings per share (EPS) of $ 0.11, analysts expect a decrease in sales, and revenue growth will decrease by 45.68% in the same period. This indicates a difficult position for AREC, since the company also faces a high Price / Book ratio of 7.46, which means that the stock can sell at a premium compared to its book value.

InvestingPro’s recommendations indicate that AREC stock has recently moved, with a one-week price return of -17.16%. This may be due to concerns about the company’s short-term exposure to its liquid assets, which may pose a financial risk. However, a company’s low P/E ratio relative to its earnings growth may indicate that the stock is undervalued if the company can maintain its profitability.

For investors interested in a more in-depth analysis of AREC’s financial health and market valuation, additional InvestingPro Tips are available. There are 7 more tips mentioned InvestingPro for AREC, providing an in-depth look at a company’s financial situation and potential investment risks and opportunities. To access these information, investors can visit https://www.investing.com/pro/AREC and use the coupons PRONEWS24 to receive an additional 10% on annual or bi-annual Pro and Pro+ subscriptions.

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