American Resources Corporation (AREC): Business Model Canvas [Dec-2025 Updated]

You're looking at a company making a massive pivot, and honestly, the numbers tell a compelling, if slightly tense, story. American Resources Corporation (AREC) is shifting from legacy assets to becoming a key domestic supplier of critical minerals, like rare earth oxides, by refining coal waste-a true environmental cleanup play turned strategic asset. While their Q2 2025 results showed a net loss of $(8.67 million) as they pour capital into facilities like the Kentucky Lithium plant, the analyst consensus is defintely bullish, projecting a $3.1 million profit for the full year, driven by massive government partnerships and offtake deals with players like POSCO International America. So, how exactly does this transformation from liability to high-purity magnet material supplier stack up across all nine building blocks? Dive into the canvas below to see the whole picture.

American Resources Corporation (AREC) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that American Resources Corporation (AREC) is building to secure its domestic critical minerals supply chain, especially through its subsidiary, ReElement Technologies. These partnerships are the engine driving its strategy, moving from concept to scaled production.

The structure of these relationships is key to understanding AREC's near-term value proposition. Here's a breakdown of the major players and the financial commitments involved as of late 2025.

Strategic Equity and Government Backing

American Resources Corporation (AREC) maintains a strategic, minority equity stake in its rare earth refining arm, ReElement Technologies. This ownership position is approximately 19.9%. This relationship is now heavily bolstered by significant government support aimed at domestic supply chain resilience.

The partnership with the U.S. Department of War/OSC (Office of Strategic Capital) is massive, announced as a joint funding commitment totaling $1.4 billion. This funding, flowing through the One Big Beautiful Bill Act, is designed to rapidly scale domestic production capabilities for critical components like rare earth magnets.

This government capital is earmarked for specific build-outs:

• The commitment includes $80 million directed to ReElement Technologies.
• A larger portion, $620 million, is allocated to Vulcan Elements.

The combined goal of these efforts, which include ReElement Technologies and Vulcan Elements working together, is to target production of up to 10,000 metric tons of Neodymium Iron Boron (NdFeB) magnet material. This is a clear action to reduce dependence on foreign sources for defense and commercial applications.

Offtake and Sourcing Agreements

Securing a buyer for the refined product is just as critical as securing the funding to build the refinery. American Resources Corporation (AREC) has locked in a long-term offtake partnership through ReElement Technologies with POSCO International America. This deal is designed to take high-purity separated rare earth oxides, including dysprosium, yttrium, terbium, and neodymium praseodymium, off ReElement's hands.

The scale of this commitment is significant, targeting volumes scaling to more than 3,000 metric tons through the year 2030. This agreement also establishes a joint taskforce to secure feedstock from various sources, including waste and scrap magnets.

To feed this refining capacity, ReElement Technologies entered a commercial processing agreement with Electronic Recyclers International (ERI). ERI, noted as the largest electronics recycler in the U.S., will use its network, which includes eight U.S.-based recycling centers, to aggregate and pre-process end-of-life magnet materials. ReElement then refines this feedstock into the high-purity oxides needed by partners like POSCO International America.

Here's a quick summary of the key partnership metrics:

To be fair, American Resources Corporation (AREC) itself raised $74 million in gross equity capital in October 2025 to support these activities, while carrying a total debt burden of $228.7 million. The success of these partnerships is definitely tied to their ability to manage that capital structure.

American Resources Corporation (AREC) - Canvas Business Model: Key Activities

Extracting critical minerals from over 120 million tons of controlled coal waste is a primary activity for American Resources Corporation. These controlled, permitted coal waste deposits are located across Kentucky and West Virginia. Internal estimates suggest access to over 128 million tons of previously extracted waste material across Kentucky, West Virginia, and Indiana. The targeted elements for extraction and concentration include neodymium (Nd), praseodymium (Pr), dysprosium (Dy), terbium (Tb), gadolinium (Gd), and yttrium (Y).

Refining rare earth and battery elements to high-purity oxides is managed via the affiliation with ReElement Technologies. ReElement Technologies is currently positioned as the only U.S. producer of magnet-grade rare earth oxides. This refining capacity is crucial, as American Resources Corporation has secured agreements with approximately 70% of the planned downstream market in the United States. Furthermore, ReElement Technologies received an $80 million loan from the U.S. Department of War's Office of Strategic Capital (OSC) to support advanced rare earth element separation. The combined efforts with partners aim to scale to 10,000 metric tonnes of NdFeB magnet production capacity in the United States.

Developing the Kentucky Lithium refining facility, Kentucky Lithium LLC (KYL), is a key development activity. This facility is poised to initially produce 15,000 metric tons per year of lithium carbonate or lithium hydroxide. The expansion of the KYL complex is supported by an extension of a bond purchase agreement for $150 million in Kentucky Industrial Building Revenue Bonds, Series 2024. The facility is designed to produce ultra-pure rare earth oxides in addition to battery-grade lithium.

Securing capital for commercialization is an ongoing critical activity. American Resources Corporation closed a common-stock private investment in public equity (PIPE) financing on October 13, 2025, raising $33 million. This financing was priced at $3.55 per share of common stock. In total for October 2025, the company completed two private placements, raising approximately US$40 million and the $33 million, totaling about US$73 million to support rare earth activities. For context on the financial state being funded, American Resources reported Q3 2025 revenue of $0.05 million and an annual net income of -$40.11 million.

Here are the key operational and financial metrics underpinning these activities:

The execution of these activities involves several strategic components:

• Securing offtake agreements, including one with POSCO International America, predicted to scale to over 3,000 metric tons of oxides by 2030.
• Advancing refining capacity at the Noblesville facility, which has commissioned new equipment, including a Bipolar Electrodialysis Unit (BPED).
• The company has entered a tolling agreement for refining antimony ore, expected to generate over $29 million annually.
• The KYL facility development is backed by an extension of $150 million in Kentucky Industrial Building Revenue Bonds, Series 2024.

You should definitely track the deployment milestones for the processing capacity buildout over the next 6 to 18 months, as that will dictate the timing of cash flow generation from the new concentrate sales. Finance: draft 13-week cash view by Friday.

American Resources Corporation (AREC) - Canvas Business Model: Key Resources

You're looking at the core assets American Resources Corporation (AREC) controls to execute its strategy in the critical minerals space. These aren't just assets on a balance sheet; they are the physical and intellectual property that underpins the entire operation.

Controlled Deposits of Coal Waste in Kentucky and West Virginia (REE Feedstock)

The foundation of the upstream operation is access to massive, already-mined resources.

• Controlled coal waste deposits exceeding 120 million tons across Kentucky and West Virginia.
• These deposits are fully permitted and benefit from existing logistics infrastructure.
• The feedstock is targeted for the extraction and concentration of rare earth elements (REEs), including neodymium (Nd), praseodymium (Pr), dysprosium (Dy), terbium (Tb), gadolinium (Gd), and yttrium (Y).
• American Resources Corporation holds mining leases and reclamation permits across multiple sites in Kentucky, West Virginia, and Indiana.

Patented Chromatography Refining Technology for High-Purity Separation

This is the intellectual property, primarily housed within ReElement Technologies Corporation, that allows for high-value output.

The proprietary chromatography refining method claims specific performance metrics against traditional methods:

ReElement Technologies is currently in due diligence with the U.S. Department of War for an $80 million loan and equity investment via warrants. ReElement Technologies also signed a rare earth offtake agreement with POSCO International America Corp.

Marion Supersite and Noblesville Refining Facilities for Processing

These Indiana facilities represent the physical processing capacity, scaling from smaller, ultra-pure output to larger, magnet-grade volumes.

Here's a breakdown of the stated capacity targets for the refining hubs, as of late 2025:

The Marion Supersite Phase 1 installation occupies approximately 40,000 square feet within an existing 400,000+ square foot facility. Over 60% of the necessary equipment for Marion's initial growth phase has been ordered, identified, or installed.

Equity Stakes in Strategic Holdings like ReElement and Electrified Materials

American Resources Corporation maintains ownership interests in key downstream and service entities.

• Equity stake held in ReElement Technologies Corporation: 19%.
• This holding generated $3.5 million in non-controlling income in the past four quarters.
• Portfolio includes Electrified Materials Corporation, a battery and magnet recycling business.
• Portfolio includes Royalty Management Holding Corporation, a royalty company.

For the last twelve months, American Resources Corporation reported revenue of just $0.1 million.

American Resources Corporation (AREC) - Canvas Business Model: Value Propositions

American Resources Corporation's value propositions center on securing a domestic, sustainable, and technologically advanced supply chain for critical materials.

Domestic, sustainable, and low-cost supply of critical minerals and REE

The value proposition includes establishing a cost structure competitive with international sources while operating domestically. ReElement Technologies CEO Mark Jensen stated that their refining platform enables supplying separated and purified rare earth oxides at costs comparable to Chinese producers. The company has been actively raising capital to scale this operation, completing a $40 million private placement priced at $5.10 per share in October 2025, issuing approximately 7.84 million shares. This followed a reported $33 million PIPE financing deal. In total, American Resources Corporation raised approximately US$73 million from institutional investors in October 2025 to support rare earth element extraction and processing. For the nine months ending September 30, 2025, the reported revenue was $95,349, with a net loss of $21.6 million. The trailing twelve-month revenue is reported as $95,026.

The domestic supply focus is underpinned by strategic agreements, including a $1.4B partnership with the U.S. Department of War and Vulcan Elements to advance fully integrated domestic rare earth magnet supply chain, announced as of November 18, 2025.

High-purity rare earth oxides (Nd, Pr, Dy, Tb) for defense and electrification

American Resources Corporation, through ReElement Technologies, is positioned as the only U.S.-based solution capable of economically separating both heavy and light rare earth elements. Specific purity achievements demonstrate the high-value output:

The company is actively producing magnet-grade rare earth oxides daily. Furthermore, a tolling agreement for refining antimony ore is expected to generate over $29 million annually.

Environmental remediation: Transforming coal waste liabilities into economic assets

The value proposition includes transforming legacy environmental liabilities into feedstock for critical minerals. American Resources Corporation has access to internal estimates of over 128 million tons of previously extracted waste material across Kentucky, West Virginia, and Indiana. This controlled land access spans over 30,000 acres. ReElement's technology is designed to economically separate, purify, and refine these coal waste concentrates. The company's approach emphasizes environmental remediation of former mine lands.

Circular supply chain for battery and magnet materials through recycling

American Resources Corporation's ReElement Technologies subsidiary has a platform focused on refining recycled material from rare earth permanent magnets and lithium-ion batteries. A landmark commercial processing agreement was signed with Electronic Recyclers International (ERI) on November 20, 2025, to source and refine end-of-life magnet materials. ERI will use its eight US recycling centers to aggregate and pre-process magnet-bearing materials for ReElement refinement.

The company's financial structure as of late 2025 shows significant liabilities relative to assets, with total liabilities exceeding assets by $95 million and a substantial stockholders' deficit of $93.4 million. The current ratio stood at 0.23 as of April 2025, indicating liquidity constraints.

• ReElement Technologies is recognized as the only scalable solution in the United States for economically separating and purifying both heavy and light rare earth elements.
• The company is advancing research for domestic production of yttrium, gallium, germanium, and molybdenum.
• The company's stock closed at $3.5034 on November 18, 2025.

American Resources Corporation (AREC) - Canvas Business Model: Customer Relationships

You're looking at how American Resources Corporation (AREC) locks in its future revenue, which, as of late 2025, is heavily reliant on securing long-term, strategic relationships rather than transactional sales. Given the company's Q3 2025 revenue of just $165 for the quarter, or $45,349 for the nine months ending September 30, 2025, these relationships are the bedrock for their development-stage ReElement and Electrified Materials segments.

Direct, long-term supply contracts with strategic off-takers (e.g., POSCO)

The relationship with POSCO International America, channeled through the ReElement Technologies subsidiary, is a prime example of securing future volume. This long-term agreement specifically targets the procurement of more than 3,000 metric tons of purified rare earth oxides by the year 2030. This moves the needle significantly for a company that reported a net loss attributable to shareholders of $10.2 million for the nine months ending September 30, 2025. It's about creating a guaranteed off-take path for the refined materials.

While not a direct AREC contract, the broader ecosystem shows the scale of commitment in this sector. POSCO International has secured contracts to supply 7,700 tons of permanent magnets to a North American automaker covering 2026-2031, and another 800 tons to a European automaker covering 2025-2034. This signals the massive downstream demand that AREC's upstream processing is designed to meet.

Securing this future demand is critical when the balance sheet shows current liabilities at $84.8 million against current assets of only $8.4 million. You need those contracts to justify the capital raises, like the $74 million secured in October 2025 private placements.

Government relations and compliance for national security supply chains

Customer relationships with government entities are paramount, particularly for critical mineral supply chains. American Resources Corporation's subsidiary, ReElement Technologies, is central to this, evidenced by a landmark $1.4 billion rare earth magnet partnership with the U.S. Department of War and Vulcan Elements. This isn't just a handshake; it's structured financing that aligns federal strategy with corporate execution.

The Office of Strategic Capital (OSC) has allocated specific funding within this structure: $620 million to Vulcan Elements and $80 million to ReElement Technologies, representing a total $700 million commitment from the OSC. This governmental validation is further cemented by ReElement Technologies receiving the 2025 Trusted Tech Leadership Award for its refining innovations supporting national security. These relationships provide a non-dilutive (in terms of pure sales) revenue pathway and de-risking mechanism for the entire business model.

• $1.4B Total Partnership Value (Rare Earth Magnet Production)
• $80 million OSC Loan Allocation to ReElement Technologies
• 2025 Trusted Tech Leadership Award Recipient
• Partnership aims to secure domestic supply for defense systems like precision guidance and radar equipment.

High-touch, technical support for specialized industrial buyers

For specialized industrial buyers, especially those integrating newly refined critical materials, the relationship shifts to deep technical partnership. While specific American Resources Corporation data on technical support revenue is not public, the general market trend shows where the value lies for high-specification products. When customers have high-value issues, phone support remains the top service channel, used by 70% of customers. This suggests that for complex material qualification and integration-which is what ReElement is providing-a high-touch, direct communication channel is non-negotiable for closing and maintaining these strategic deals.

The nature of the business-refining rare earth oxides and developing electrified materials-demands that AREC's technical teams act as embedded consultants, helping buyers integrate materials like high-purity germanium (refined to over 99.9% purity by ReElement). This level of engagement builds the trust necessary for long-term contracts, which is essential when the company is navigating substantial financial hurdles, including a total deficit of $95.1 million as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

American Resources Corporation (AREC) - Canvas Business Model: Channels

You're looking at how American Resources Corporation (AREC) gets its value propositions to its customer segments, focusing on the distribution and communication methods as of late 2025.

Direct sales and long-term off-take agreements with industrial customers

American Resources Corporation (AREC) channels its refined materials through direct contractual relationships. ReElement Technologies, a subsidiary, finalized a rare earth offtake agreement with POSCO International America Corp. Furthermore, in August 2025, Vulcan Elements and ReElement Technologies signed a commercial-scale offtake agreement specifically for light and heavy rare earth oxides.

Supply chain integration with partners like Vulcan Elements

A key channel for scaling production is through deep vertical integration and strategic alliances. American Resources Corporation (AREC), via ReElement Technologies, is part of a landmark joint partnership valued at $1.4 billion with the U.S. Department of War Office of Strategic Capital (OSC) and Vulcan Elements. This funding is structured as follows:

The combined effort targets scaling production capacity to 10,000 metric tonnes of NdFeB magnet production annually. American Resources Corporation (AREC) holds a 19% equity stake in ReElement. Additionally, ReElement Technologies has a new partnership with Uzbekistan focused on tungsten extraction. Another channel involves a commercial processing agreement with Electronic Recyclers International (ERI) to supply recycled magnet feedstock.

Public relations and industry conferences (e.g., Critical Minerals Forum)

Communication and industry validation serve as channels to build market trust and secure future funding. ReElement Technologies secured the 2025 Trusted Tech Leadership Award. ReElement was also a finalist for the National Science Foundation Award, which could provide potential funding up to $160M over ten years.

Stock exchange listing (NASDAQ: AREC) for capital access

The listing on NASDAQ is a primary channel for accessing capital markets. As of November 22, 2025, American Resources Corporation (AREC) had a market capitalization of $270.72 million. The stock price on that date opened at $2.67, with a 52-week high of $7.11 and a 52-week low of $0.38. The company successfully raised $74 million in gross equity capital in October 2025. Insiders sold stock valued at $10,405,579.00 in the preceding 90 days. Institutional investors held 9.32% of the stock as of that date. The 200-day moving average for the stock was $2.01.

American Resources Corporation (AREC) - Canvas Business Model: Customer Segments

You're mapping out American Resources Corporation (AREC)'s customer base as of late 2025. Honestly, the story here isn't about massive current sales figures-the Q2 2025 revenue was just $13,256, and Q3 2025 revenue was only $50.17K, reflecting the pivot away from suspended coal operations. Instead, the customer segments are defined by strategic, high-value, future-focused partnerships, especially those involving the ReElement Technologies and Electrified Materials subsidiaries.

The core of American Resources Corporation (AREC)'s customer and supply ecosystem revolves around securing domestic supply chains for critical minerals. Here's how the key segments line up:

Let's break down the relationships for each group. The strategy is clearly about building a secure, domestic, circular economy for these vital inputs.

U.S. Defense and National Security contractors (critical magnet materials)

This segment represents a major strategic win, positioning American Resources Corporation (AREC) as a key domestic supplier for national security needs. The focus here is on high-purity rare earth oxides essential for advanced magnet manufacturing.

• ReElement Technologies, the refining affiliate, is involved in a landmark $1.4B deal with the U.S. Department of War to boost domestic rare earth magnet production.
• Trial shipments of rare earth oxides, achieving purity levels above 99.99%, are already underway to defense partners.
• The company received the 2025 Trusted Tech Leadership Award for contributions to national security through refining tech innovation.

Securing this defense pipeline is definitely a priority, even with the company posting a net loss of $21.6 million for the nine months ending September 30, 2025.

Electric Vehicle (EV) and battery manufacturers (lithium, battery elements)

The electrification market is the growth engine, requiring both rare earths for magnets (like in EV motors) and battery-grade materials. American Resources Corporation (AREC) is building out capacity to serve this demand.

The ReElement facility in Kentucky is being developed with a specific target in mind:

• The plan is for the Kentucky Lithium refining facility to produce 15,000 metric tons per annum of battery-grade lithium carbonate and/or lithium hydroxide.
• The company secured a bond purchase agreement for $150 million for this Kentucky Lithium complex.
• Electrified Materials Corporation (EMCO) is set up to recycle lithium-ion batteries, creating Battery Black Mass for refinement into battery-grade materials.

Rare earth metals are an input to most high-tech devices and electric vehicles.

Steel and industrial manufacturers (metallurgical carbon, iron ore)

This is the legacy side of the business, though management has signaled confidence in its future profitability, even while suspending coal production. American Resources Corporation (AREC) supplies these inputs for global development and infrastructure.

The company's operations in Eastern Kentucky and Southern West Virginia concentrate on these materials.

• The company's focus includes the extraction and processing of metallurgical carbon, which is an essential ingredient used in steelmaking.
• The business model includes raw material extraction, on-site processing, and product delivery to steel manufacturers and industrial users.
• The company has been working to restructure its assets to make them attractive for operators to step in and restart the McCoy Elkhorn complex.

Electronics recyclers and end-of-life magnet processors

This segment is crucial as it feeds the circular supply chain for the defense and EV segments. These partners provide the feedstock for American Resources Corporation (AREC)'s advanced refining capabilities.

The commercial processing agreement with Electronic Recyclers International (ERI) is a prime example of this customer/supplier relationship:

• ERI, the largest electronics recycler in the US, will supply recycled magnet feedstock.
• ERI will use its eight US recycling centers and capacity exceeding 1 billion pounds annual e-waste to aggregate materials.
• Electrified Materials (EMCO), an AREC subsidiary, received a $911,519 matching grant from the State of Indiana to buy advanced equipment for preprocessing these end-of-life materials.

EMCO controls the preprocessing of end-of-life magnets and batteries to ensure a domestic supply chain for rare earth and battery elements through its refining partnership.

Finance: draft 13-week cash view by Friday.

American Resources Corporation (AREC) - Canvas Business Model: Cost Structure

You're looking at the cost side of American Resources Corporation (AREC) as it pivots hard into the electrified materials space. The structure is heavily weighted toward long-term asset development and technology maturation, which is why the current operating costs are outpacing the minimal revenue coming from legacy or transitional activities. Honestly, this is typical for a company making a major technology shift.

The most significant financial commitment right now is the Significant capital expenditure (CAPEX) on refining facility development, specifically the Kentucky Lithium complex. American Resources Corporation, through its subsidiary ReElement Technologies, secured a bond purchase agreement that extends a principal amount of $150 million specifically earmarked for this complex, which is designed to produce battery-grade lithium products. This massive outlay is a forward-looking cost, not an immediate operating expense, but it certainly defines the capital structure.

The current financial reality shows that Operating expenses currently exceed revenue. For the three months ended June 30, 2025, American Resources Corporation reported a Net Loss of $(8.67 million), or more precisely, $(8,668,904)$. This loss is set against very low revenue figures for the same period, illustrating the pre-revenue nature of the new technology segments.

Here's a quick look at the Q2 2025 financial disparity, showing how costs are dominating the top line:

The operating expenses themselves are substantial when compared to the revenue base. For instance, Marketing, selling, general, and administrative expenses totaled $11.05 million for the quarter, and net interest expenses added another $2.83 million to the drag. These figures clearly show the burn rate associated with maintaining the corporate structure while development is underway.

Regarding High research, development, and commercialization costs for proprietary technology, while a specific R&D line item for Q2 2025 isn't immediately available, the entire strategic pivot to ReElements and Electrified Materials segments, which are noted as being in the pre-revenue stages, confirms this is a major cost driver. The company's proprietary modular refinery platform, recognized as a scalable solution for rare earth element separation, requires continuous investment to scale from demonstration to commercial capacity.

Finally, the structure benefits from Minimal overhead structure following subsidiary distributions. American Resources Corporation has completed the distribution of subsidiaries like ReElement, American Carbon, and Electrified Materials, which allows the remaining entity to focus capital deployment along the electrified value chain. This post-distribution structure is intended to be leaner, concentrating resources on the core strategic assets rather than supporting a broader, more complex operational footprint.

Finance: draft 13-week cash view by Friday.

American Resources Corporation (AREC) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of American Resources Corporation (AREC) as of late 2025, and honestly, it's a story of current operations versus future potential. The current revenue streams are small but provide a base while the high-tech segments ramp up.

For the second quarter of 2025, the actual reported revenue streams show a mix of legacy and service activities. Metal recovery and sales revenue for Q2 2025 was reported at $1,050. Also for that same quarter, service fee revenue came in at $30,305.

Here's a quick look at those reported Q2 2025 components:

It's important to note that the total reported revenue for Q2 2025 in the official filings was $98,114, or alternatively reported as $0.013256 million, depending on the reporting source and classification of revenue lines like sales (which was reported as $0.002957 million) versus total revenue.

The core of the long-term thesis rests on the next generation of revenue, which is currently pre-revenue or very low volume. This centers on the development of technologies for rare earth element recovery. Future revenue from purified rare earth oxide sales is the big swing factor here, currently showing minimal contribution.

You also have to account for passive income streams, though they are likely minor contributors right now. Royalty income from former infrastructure assets provides a small, steady trickle of cash flow.

Looking forward, the market sentiment, at least on one front, is quite optimistic about the full fiscal year 2025. Analyst consensus projects positive profits of $3.1 million in 2025, a defintely bullish forward view. This compares to analyst revenue forecasts for the full year 2025 averaging around $108,389,446, though some projections show quarterly revenue near 47 MM by the end of 2025.

The current revenue profile is characterized by:

• Reliance on smaller, established service and recovery streams.
• Significant expected growth from the ReElements and Electrified Materials segments.
• A high-stakes pivot toward domestic critical mineral supply chains.
• Reported net losses for the first half of 2025, totaling $15.32 million.

Finance: draft 13-week cash view by Friday.