American Resources Corporation (NASDAQ:AREC) ("American Resources") through its affiliated minority holding in ReElement Technologies Corporation ("ReElement"), a leading U.S.-based innovator in rare earth and critical mineral refining, today announced that ReElement has formed a joint venture with POSCO International Corporation ("POSCO International"), a global leader in materials trading and industrial development, to develop integrated rare earth element and permanent magnet production in the United States.

A formal signing ceremony took place on May 21, 2026 in Washington, D.C., with ReElement CEO Mark Jensen and POSCO International President and CEO Kye-In Lee executing the agreement.

The joint venture represents a major milestone in advancing the long-term partnership previously established between ReElement and POSCO International, including their commercial offtake agreement announced in September. The collaboration further strengthens U.S.-South Korea cooperation in building a resilient and sustainable supply chain for critical minerals essential to national security, clean energy, and advanced technologies.

Establishing a Fully Integrated, Allied Rare Earth Supply Chain

The joint venture is designed to establish a closed-loop, end-to-end rare earth supply chain, spanning feedstock sourcing, separation, purification and refining, and permanent magnet manufacturing within the United States.

The partnership combines:

ReElement's advanced chromatographic separation and purification refining platform, enabling high-purity rare earth oxide (REO) production across both light and heavy rare earth elements; and

POSCO International's global industrial capabilities and deep relationships across automotive and industrial markets, along with its expertise in large-scale industrial deployment and materials science.

Together, the companies are building a scalable platform to support high-growth sectors including electric vehicles, artificial intelligence, advanced semiconductors, defense systems, and clean energy technologies.

Project Scope and Development Timeline

The joint venture brings a $200 million investment to develop a U.S.-based rare earth refining and magnet manufacturing complex. Final site selection is currently underway.

Initial development phases include:

Phase 1 (2028): ~3,000 metric tons per annum (MTPA) of separated rare earth oxides (SREO)

Phase 2 (2030): Expansion to ~6,000 MTPA of SREO

In addition to oxide production, the project will incorporate:

Light and heavy rare earth metalization capabilities

Permanent magnet manufacturing capacity

Integrated feedstock sourcing through a joint taskforce focused on both domestic and international primary and recycled resources

Strengthening Allied Supply Chains Through Strategic Collaboration

The joint venture directly addresses critical gaps in U.S. and allied supply chains by enabling domestic production of high-purity rare earth materials and magnets-historically dominated by foreign supply.

By combining complementary strengths, ReElement and POSCO International are advancing a capital-efficient, scalable, and environmentally responsible model for rare earth development -one that reduces reliance on legacy, capital-intensive and single-source systems that have proven unsustainable, while supporting long-term supply chain resilience.

Mark Jensen, Chief Executive Officer of ReElement Technologies, commented:

"This joint venture represents a defining moment in the evolution of the rare earth supply chain in the United States. By combining ReElement's refining-first platform with POSCO International's global capabilities and industrial scale, we are creating a fully integrated, end-to-end solution that addresses one of the most critical gaps in the market.

This is not just about building capacity - it's about building a new model. One that is modular, scalable, and capable of aligning with the rapidly evolving needs of domestic and allied markets. Together, we are establishing a secure, non-China supply chain that supports national security, clean energy, and the next generation of advanced technologies."

Kye-In Lee, President and CEO of POSCO International, added:

"Today's signing is more than just a contract - it is a reflection of the trust and shared vision between our two companies. POSCO International's global supply chain capabilities and ReElement's innovative refining technology are highly complementary and bring out the best in each other.

Building a heavy rare earth separation and refining value chain in the United States will not be easy, but that is precisely why this partnership matters. Together, we believe we can achieve something meaningful and strategically important for the future."