News

Mitsubishi Materials Corporation (the "Company") hereby announces that it has decided to make an investment in ReElement Technologies Corporation ("ReElement"), a company headquartered in Indiana, the U.S., engaged in the recycling of rare earth elements and other critical resources, through the acquisition of preferred shares of ReElement (the "Investment"), and has executed a Memorandum of Understanding (the "MOU") concerning Japan-U.S. collaboration in the field of rare earth and rare metal recycling.

This matter constitutes a strategic investment made with a view to accelerating the global expansion of the Company's secondary smelting business, while also considering the creation of new resource circulation businesses in Japan, under the basic policy of becoming a company committed to "creating the future through resource circulation," as set forth in the Company's Mediumterm Management Strategy (FYE March 2027-2029).

1. Background and Purpose of the Investment

Rare earth elements and rare metals are indispensable materials supporting future growth industries such as electric vehicles, renewable energy, and semiconductors, and the establishment of stable supply systems worldwide has become an important issue. In various countries, efforts are also progressing in the recycling field toward strengthening supply chains for critical minerals.

ReElement possesses proprietary chromatography‑based technology used in separation and purification processes, which form the core of recycling operations. Compared with the solvent extraction method that is currently widely used, this technology is characterized by enabling significant reductions in capital and operating costs through the downsizing of facilities, as well as reducing environmental impact, including reductions in waste generation, greenhouse gas emissions, and water usage, by eliminating the use of hazardous solvents.
Through this technology, it is possible to recover rare earth elements and rare metals at a high purity of 99.5% or higher and at a high yield of 95% or higher from a diverse range of feedstocks, including scrap such as used magnets and batteries, as well as natural ores and mine waste (tailings).

Through this Investment, the Company will apply this technology to simultaneously advance participation in a circular resource supply chain in North America and consider the commercialization of rare earth and rare metal recycling businesses in Japan, thereby accelerating the global expansion of resource circulation.

2. Details of the Collaboration

(1) Collaboration in the United States
With support from the U.S. government, ReElement is advancing initiatives aimed at strengthening domestic supply chains for critical minerals in the United States. Specifically, at its pilot facility located in Indiana, ReElement has already established technology for the recycling of rare earth elements derived from waste magnets, and plans to commence operation of a commercial facility currently under development in the same state within the year.
In the U.S., the Company will seek to participate in the supply chain through product offtake and tolling arrangements, which involve providing feedstock and outsourcing separation and purification processes. Through mutually complementary collaboration in feedstock procurement, including E‑Scrap, the Company aims to strengthen supply chain development.

(2) Collaboration in Japan
In order to consider the joint commercialization of rare earth and rare metal recycling in Japan with ReElement, the Company will jointly conduct a feasibility study.
By integrating the Company's pretreatment and metal recovery technologies cultivated through its home appliance and automotive recycling businesses, together with its feedstock collection capabilities for electronic scrap, and combining them with ReElement's separation and purification technology, the Company will examine the potential for a future joint business (assuming the establishment of a joint venture).

3. Overview of the Target Company

(1) Name	ReElement Technologies Corporation
(2) Location	12115 Visionary Way, Suite 174, Fishers, Indiana 46038, United States (Corporate Office)
(3) Name and Title of Representative	Mark Jensen, Chief Executive Officer
(4) Business Description	Holding company with core operations focused on the separation and refining of critical minerals in the United States
(5) Date of Establishment	June 2020
(6) Shareholding Structure	Founders (management), directors and employees: Approx. 25% American Resources Corporation (the former parent company): Approx. 17% Other shareholders (including external investors): Approx. 58%

4. Executive Commentary

About ReElement Technologies Corporation

ReElement Technologies Corporation, a minority holding of American Resources Corporation (NASDAQ: AREC), is a leading provider of high-performance refining capacity for rare earth elements and critical minerals. Its refining-first, multi-mineral, multi-feedstock platform is designed to process a wide range of inputs - including recycled materials from permanent magnets, lithium-ion batteries, and industrial, defense, and technology waste streams, as well as mined ores, brines, and coal-based byproducts - into high-purity products that support a cost-effective, environmentally responsible, and circular supply chain.

ReElement's innovative and scalable "Powered by ReElement" process leverages its exclusively licensed and internally developed intellectual property, integrating directly into partners' material processing flowsheets to enhance efficiency and adaptability across the global critical mineral supply chain. For more information visit reelementtech.com or connect with the Company on Facebook, X, and LinkedIn.

(Terms)

E-Scrap

A general term referring to discarded circuit boards and similar items among used or unnecessary electrical and electronic equipment that contain high concentrations of valuable metals.

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