New battery processing capability complements EMCO's existing platform for magnet material
EMCO is expanding disposition, pre-processing and conditioning services for end-of-life, off-warranty and off-spec lithium-ion batteries, with an initial focus on LFP battery chemistry
EMCO and ReElement Technologies are combining front-end battery processing with advanced refining to create an efficient, low-cost circular solution for domestic and allied battery material supply chains
Expansion is being supported by existing private capital raised at the EMCO subsidiary level, as well as a State of Indiana recycling grant
FISHERS, IN / ACCESS Newswire / May 28, 2026 / American Resources Corporation ("American Resources") (NASDAQ:AREC) today announced that its wholly owned subsidiary, Electrified Materials Corporation ("EMCO"), an emerging domestic platform for critical mineral recycling, pre-processing and conditioning, has procured its initial battery shredding line to expand its ability to process lithium-ion batteries and produce conditioned battery material feedstocks for advanced refining.
The new battery shredding line complements EMCO's existing processing and conditioning capabilities for magnet materials, copper, aluminum and ferrous metals recovered from end-of-life products and manufacturing scrap. The addition of battery processing capacity advances EMCO's ability to provide safe disposition, shredding, pre-processing and conditioning services for end-of-life, off-warranty and off-spec lithium-ion batteries while supplying critical battery element feedstocks to ReElement Technologies Corporation ("ReElement") for downstream separation, purification and refining.
EMCO's initial battery processing focus will be on lithium iron phosphate ("LFP") battery chemistry, one of the largest and fastest-growing segments of the lithium-ion battery market due to its attractive cost profile, safety characteristics, thermal stability, long cycle life and reduced reliance on nickel and cobalt. LFP batteries are increasingly used across electric vehicles, stationary energy storage systems, commercial fleet applications, industrial equipment and other high-volume electrification markets.
While LFP has historically presented recycling challenges because it does not contain the same levels of high-value nickel and cobalt found in other lithium-ion chemistries, EMCO and ReElement believe their complimentary platform addresses this market gap. Through ReElement's advanced separation and refining capabilities, the companies have validated a techno-economic pathway for LFP recycling based on lithium payable economics - without requiring monetization of nickel, cobalt or other higher-value metals to support the recycling model.
This approach creates a more efficient and economically viable circular solution for LFP batteries by pairing EMCO's low-cost disposition, shredding and pre-processing capabilities with ReElement's ability to separate and refine lithium-bearing materials into battery-grade and technical-grade products for domestic and allied markets.
Mark Jensen, Chairman and CEO of American Resources Corporation, commented, "This is another important step in our strategy to build a comprehensive domestic critical mineral supply chain. Electrified Materials is scaling the front-end capabilities needed to safely collect, process and condition high-growth recycled feedstocks, while ReElement provides the advanced refining platform needed to convert those materials into high-purity products. This is the strength of our refining-first model - by solving the most complex part of the supply chain first, separation, purification and refining, we can now de-risk and develop complementary segments such as battery recycling, aggregation and pre-processing. In the case of LFP, ReElement's refining capabilities allow us to pursue an economically viable circular model based on lithium recovery, rather than depending on nickel and cobalt economics that are not present in meaningful quantities in LFP chemistry."
Chris Dreska, Chief Executive Officer of Electrified Materials Corporation, commented, "The procurement of this battery shredding line is an important milestone for Electrified Materials as we expand our platform into lithium-ion battery materials. LFP is one of the fastest-growing battery chemistries in the market, but it has historically been difficult to recycle economically because traditional recycling models were built around nickel and cobalt recovery. Through our partnership with ReElement, we believe we have validated a more efficient pathway based on lithium payable economics, enabling a circular solution for LFP batteries without needing to rely on nickel or cobalt monetization. This gives customers a more complete, domestic and transparent solution for end-of-life, off-warranty and off-spec battery materials."
EMCO expects to process a range of lithium-ion battery chemistries, including LFP, nickel manganese cobalt ("NMC"), lithium cobalt oxide ("LCO"), lithium manganese oxide ("LMO") and other emerging chemistries. The company's platform is being designed to support customers seeking responsible disposition, recycling, material recovery and domestic refining pathways for battery materials that may otherwise be underutilized, exported, landfilled or processed through less efficient legacy systems.
The announcement further demonstrates American Resources' refining-first approach, which leverages ReElement's advanced separation and purification platform to unlock value across multiple feedstock streams. By first addressing the critical midstream bottleneck - separation, purification and refining - American Resources and its ecosystem partners are able to develop demand-aligned supply chain segments, including recycling, aggregation, pre-processing and feedstock conditioning, with greater capital efficiency and lower execution risk.
Traditional battery recycling economics have often been driven by the recovery of nickel, cobalt and copper. However, as LFP battery adoption continues to grow across electric mobility and stationary storage markets, the need for a more efficient recycling model has become increasingly important. EMCO and ReElement believe their complementary approach can help address this market gap by combining low-cost physical processing with advanced refining capabilities designed to produce separated and purified battery-grade and technical-grade products from materials that have historically been difficult to recycle economically.
This announcement also reflects a broader strategic shift in the critical mineral supply chain: moving from a recycling model dependent on commodity metal values to a refining-first model driven by demand for purified, specification-grade materials. By aligning front-end recycling and pre-processing with downstream refining demand, EMCO and ReElement are building a circular platform designed to recover value from battery chemistries that legacy systems have historically struggled to process economically.
The procurement of the battery shredding line follows EMCO's previously announced expansion of its pre-processing capabilities for magnets, copper, aluminum and ferrous metals. Together, these initiatives position EMCO as a growing front-end platform for critical mineral recycling and conditioning, while supporting ReElement's downstream refining of rare earth elements, battery materials and other critical minerals essential to electrification, defense, energy storage and advanced manufacturing.
American Resources, EMCO and ReElement continue to engage with commercial partners, manufacturers, recyclers, logistics providers, battery users and government stakeholders to expand domestic circular supply chain solutions for lithium-ion batteries, rare earth elements and critical minerals.
About Electrified Materials Corporation
Electrified Materials Corporation ("EMCO") is a wholly owned subsidiary of American Resources Corporation (NASDAQ: AREC). EMCO is an innovative recycler of metals and minerals serving advanced technology, commercial, and defense markets. The company specializes in preprocessing end-of-life magnets, batteries, and ferrous metals to help ensure a secure domestic supply of copper, aluminum, steel, rare earth elements, and battery materials. Through its partnership with ReElement Technologies Corporation, EMCO delivers a fully integrated solution that supports a resilient U.S. supply chain.
About ReElement Technologies Corporation
ReElement Technologies Corporation, a portfolio company of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its multi-mineral, multi-feedstock platform technology focuses on the refining of recycled material from rare earth permanent magnets and lithium-ion batteries, concentrated ores and brines, as well as coal-based waste streams and byproducts to create a cost effective and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Powered by ReElement" process which collaboratively utilizes its exclusively licensed intellectual property within its partners' material processing flow sheets to more efficiently support the global supply chain's growing demand for magnet and battery-grade products. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About American Resources Corporation (NASDAQ: AREC)
American Resources Corporation has established a comprehensive solution platform across the rare earth and critical mineral supply chain, leveraging its affiliation with, and former parent relationship to, ReElement Technologies Corporation - a leading provider of high-performance refining capacity for rare earth and critical battery elements. The Company is advancing efficient upstream and downstream critical mineral operations.
These operations span conventional and unconventional resource sourcing and development, as well as recycling and manufacturing, enabling American Resources to aggregate and process diverse feedstocks while efficiently aligning supply with end-market demand.
American Resources has established a nimble, low-cost business model focused on scalable growth. Its streamlined approach enables the Company to expand its asset portfolio and meet increasing global demand across infrastructure, defense, technology, and electrification markets - while maximizing margins and maintaining cost discipline. 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.
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
investor@americanresourcescorp.com
SOURCE: American Resources Corporation
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/metals-and-mining/american-resources-electrified-materials-procures-initial-battery-shredding-line-1171393
