USA Rare Earth, LLC, a vertically integrated magnet technology company (earlier post), announced that it signed a supply agreement with American Resources Corporation’s ReElement Technologies Corporation (ReElement). Through this agreement, ReElement will supply high-purity rare earth oxides (REOs) to USARE for use at the company’s metal and magnet manufacturing facility in Stillwater, Oklahoma.

Rare earth magnets are critical components of electric vehicle motors, wind turbines, robotics, and countless other technologies, including military guidance systems and medical devices. Currently, 90% of these permanent magnets are produced in China, and USA Rare Earth is determined to bring that capability back to America.

In conjunction with USARE’s other supply agreements, the ReElement partnership will allow the company to ramp up magnet production prior to its own rare earth oxide capability coming online in Texas.

ReElement’s oxides will also provide an additional source of raw materials, further diversifying USARE’s supply and reducing disruption risk as the company grows.

Headquartered in Fishers, Indiana, ReElement Technologies employs a patented purification and refining process that produces ultra-pure REOs in an environmentally friendly way, a departure from the harsh solvent extraction process typically used in rare earth separations. While their process is capable of adapting to various feedstocks and producing an array of outputs, their rare earth division focuses primarily on neodymium-based permanent magnets.

The supply agreement is set to commence next year.