I recall someone said shame on me for posting fake news the other day regarding the POSCO signing ceremony. I do not post fake stuff. Today's article was likely posted to create FUD.
This is major news and validation. If you think otherwise - that's your prerogative. 🫡
Sorry for the paywall but this is really interesting. This is why the stock moved pretty oddly today - likely front-running this article.
The quick read is that this is absolutely terrible, but I don't see it like that at all.
The Vulcan/Trump Jr. angle is the crux of this story, and it matters because it's the political vulnerability that Bloomberg is correctly identifying. The $620M to Vulcan has the 1789 Capital connection, and career Pentagon officials do push back on that kind of thing - that part of the narrative is credible. But Bloomberg is bundling ReElement into that story, and the dynamics are meaningfully different.
The $80M to ReElement isn't a startup bet on a politically-connected venture. The IBAS award preceded it - that was a two-year DoW program that began in September 2025 through standard procurement channels, with no OSC/White House involvement. The $80M conditional loan announcement followed. That sequencing matters: DoW's own career technical staff already determined ReElement was doing something worth supporting before the White House's "Deal Team Six" got involved.
The article's characterization of the technology as unproven at commercial scale is legitimate and shouldn't be waved away. The 60-inch column scaling from an 18-inch pilot is the single biggest execution risk in the entire thesis - I've been clear about that. Pentagon career officials being skeptical of aggressive H2 2026 production timelines is entirely rational given standard procurement risk assessment frameworks. They're not wrong to apply those standards.
But "skeptical of timelines" is a different concern than "the technology doesn't work." If the friction is about pacing rather than fundamental viability, that's a political problem, not a thesis-breaking one.
This is NOT bearish AREC/ReElement at all imo.
But here's what this actually means for AREC/ReElement:
First, the conditional nature of the $80M loan was always disclosed. AREC's 10-Q explicitly flagged that disbursement requires satisfying financial, legal, technical, and due diligence requirements. If Pentagon friction slows or complicates that process, it delays but doesn't eliminate a funding source that was never fully de-risked anyway. TEP's $200M facility was/is the primary Marion buildout capital - the DoW loan was Phase 2 support. It is not buildout-killing whatsoever.
Second, the Trump Jr./Vulcan story creates political risk for the Vulcan relationship specifically. If Vulcan's $620M loan gets pulled or restructured due to congressional scrutiny, ReElement's downstream pull-through thesis weakens a bit, alongside the other potential refiners that would supply Vulcan like $UURAF.
Third, and perhaps most importantly: MMC and POSCO are completely untouched by this narrative. Those are arms-length allied-nation strategic partners with no political exposure to the White House/Pentagon fight. If anything, a story that raises doubts about the U.S. government's execution reliability actually strengthens the case for the Japan and Korea partnerships as alternative demand anchors.
tl;dr
This is a real story but partially misframed. The legitimate concern is Vulcan's political vulnerability and Pentagon timeline skepticism. The illegitimate conflation is treating ReElement's DoW relationship as equivalent in origin and risk to the Vulcan/1789 Capital situation.
The 10-K is filed and clean (no going concern for 2025). GreenGrowth CPAs issued an unqualified opinion on the 2025 financials. The 2024 statements carried a going-concern disclosure, but management explicitly states that doubt has been alleviated as of the 2025 filing date, citing the October 2025 equity raises. That's a meaningful overhang cleared.
AREC is now a radically simplified entity. Both AIC (coal) and RLMT (ReElement) were formally deconsolidated - AIC on December 25, 2025 and RLMT on December 26, 2025. AREC now consolidates only two segments: Corporate and Electrified Materials Corporation (EMC). Everything else is equity-method or financial asset treatment.
Structural/ownership confirmed:
The $150M RLMT enterprise value at end of 2025 is the most important anchor in the whole document. It represents an actual observable transaction - not a management estimate - and it predates the POSCO announcement, the MMC deal execution, and any Marion production.
Balance sheet is strong:
The transformation is almost entirely from the spin-off gains: $28.1M on RLMT disposal + $66.9M on AIC disposal = ~$95M in non-cash gains recognized through discontinued ops
Continuing operations burn rate:
Shares outstanding: 106,971,272 as of May 19, 2026. This is the current float to use for any per-share calculations. The 2025 raise added ~28.9M net new shares, primarily through two private placements ($3.55/share and $5.10/share) and warrant exercises.
Corporate governance update:
What's missing still / watch list:
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Bottom line for the thesis: The 10-K is clean, the balance sheet is transformed, the RLMT enterprise value anchor is set at $150M with 19% confirmed, and the going concern is resolved. The filing itself is a de-risking event. Now we focus on Marion first production (July/August target), RLMT's own standalone filings, and the IPO prep cadence.
Here we go.
New release from ReElement this afternoon. This is an amazing update that really helps in validating the thesis. Here's the full release for your reference:
ReElement Technologies and Korea’s POSCO International to sign Joint Venture agreement in D.C. to produce highly refined rare earths in the United States
JV to create jobs, support sustainable and secure supply chains for strategic and commercial technologies, clean energy, and high-growth markets
FISHERS, IN / May 19 2026 / ReElement Technologies Corporation and POSCO International of Korea are forming a joint venture to produce highly refined rare earths in the United States. A signing ceremony will take place on Thursday, May 21, at 11:30 a.m. in Washington, D.C., with ReElement Technologies CEO Mark Jensen and POSCO International President and CEO Kye-In Lee signing the agreement. The event is OPEN PRESS; details are below.
The joint venture represents a major step forward in executing the partnership between POSCO and ReElement for long-term commercial production to secure the United States rare earth supply chain. The agreement advances U.S.-South Korea collaboration and supports sustainable supply chains for strategic and advanced commercial technologies, clean energy, and high-growth markets, such as electric vehicles, AI, and advanced semiconductors. The companies have established a joint feedstock taskforce for sourcing domestic and international rare earth feedstock from recycled and ore bodies.
The partnership combines ReElement's advanced chromatographic separation and purification platform with POSCO's extensive relationships throughout the automotive and industrial supply chain while leveraging POSCO's expertise in materials science and large-scale industrial deployment. This agreement reflects both companies' commitment to a sustainable and secure supply chain for high-purity rare earth elements.
Who: Mark C. Jensen, CEO, ReElement Technologies, and POSCO International President and CEO Kye-In Lee; Republic of Korea Ambassador to the United States Kang Kyung-wha; and Chan Ki Park, Minister Counselor for Trade, Industry and Energy, Embassy of the Republic of Korea
Others expected: Senior executives from ReElement and POSCO, and U.S. government officials from the Departments of State and Energy
What: Joint Venture signing ceremony for rare earth separation and refining in the U.S.
Where: To be announced, Washington, D.C.
When: Thursday, May 21, 11:30 a.m. – 12:30 p.m.
Why: The agreement advances U.S.-South Korea collaboration and supports sustainable supply chains for defense, clean energy, and advanced technologies.
About ReElement Technologies Corporation
ReElement Technologies Corporation, an affiliate of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its refining-first, 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 http://reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About American Resources Corporation (NASDAQ:AREC)
American Resources Corporation is a leader in the critical mineral supply chain, developing innovative solutions both upstream and downstream of the refining process. The company and its affiliates focus on the extraction and processing of metallurgical carbon and iron ore, essential ingredients in steelmaking, as well as critical and rare earth minerals for the electrification market and recycled metals.
Leveraging its affiliation and former parent status of ReElement Technologies Corporation, a leading provider of high-performance refining capacity for rare earth and critical battery elements, American Resources is investing in and developing efficient upstream and downstream critical mineral operations. These operations include mining interests in conventional and unconventional sources, recycling, and manufacturing.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit http://americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About POSCO International America Corporation
POSCO is a global leader in steel production and advanced materials, committed to pioneering sustainable and innovative solutions for a greener future. With a strong foundation in steel manufacturing, POSCO has expanded its operations to include eco-friendly materials, energy solutions, and cutting-edge technologies that drive the electric vehicle and renewable energy industries. Through continuous investment in clean energy projects and the development of advanced materials like GIGA STEEL and secondary battery materials, POSCO supports the transition to a low-carbon economy. As a trusted partner to clients worldwide, POSCO is dedicated to creating a more resilient and sustainable supply chain while enhancing shareholder value through strategic growth and innovation.
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.