ReElement & TEP: Securing US$200m for Rare Earth Refining

ReElement Technologies, a critical mineral refining company, and Transition Equity Partners (TEP) have announced a strategic partnership supported by a US$200m (£157m) equity facility. The investment is designed to accelerate the expansion of ReElement's rare earth refining operations at its Marion, Indiana facility, with the aim of establishing a Western-controlled alternative to concentrated foreign supply chains.

The collaboration could mark a turning point in the race to establish Western-controlled rare earth refining capacity and reduce dependency on concentrated foreign supply chains. 

The financial backing from TEP is intended to accelerate the commercial scaling of ReElement's multi-mineral refining platform. Central to this plan is the expansion of operations at Marion, where production capacity is targeted to exceed 10,000 tonnes per annum (tpa) of refined critical minerals.

The facility could serve as a blueprint for future deployments, both domestically and internationally, as the partnership looks to replicate the model across allied markets. The Marion facility is designed with feedstock flexibility in mind.

It can process both virgin mined concentrates and recycled materials, including end-of-life permanent magnets and electric vehicle batteries. This dual-stream capability could provide operational resilience during periods of variable mining output or supply disruption.

Advanced separation technology

ReElement's approach to mineral refining diverges from conventional industry practices.

The Marion plant processes both light and heavy rare earth elements (HREEs), as well as defence-critical minerals, using chromatographic separation technology. This method, adapted from the pharmaceutical sector, offers a different operational profile compared to traditional solvent extraction (SX) systems.

According to the company, its modular column-based process is 100 times more efficient than conventional mixer-settler configurations. The technology also generates an 80% lower waste profile, which could simplify environmental permitting and reduce the physical footprint required for large-scale operations.

This efficiency gain is particularly relevant as Western jurisdictions seek to balance industrial expansion with stricter environmental standards. The platform is also engineered to handle heavy rare earth elements such as Dysprosium and Terbium, which are essential for high-performance magnet applications but are currently produced at commercial scale almost exclusively outside Western jurisdictions.

For junior mining companies, the availability of modular, co-locatable refining units could improve project viability. Rather than exporting raw concentrates, smaller operators may be able to produce high-purity oxides on-site, potentially enhancing margins and attracting project financing.

Addressing refining capacity gaps

A longstanding challenge in Western critical mineral strategies has been the lack of domestic refining infrastructure. While raw ore deposits exist across North America and allied nations, the absence of local processing facilities has historically forced miners to export concentrates to China for conversion into oxides and saleable products.

The ReElement-TEP partnership aims to address this gap by establishing a domestic processing destination in Indiana. This infrastructure could provide North American and allied miners with an alternative to offshore refining routes, potentially reducing transportation costs and geopolitical exposure.

The ability to process materials domestically may also improve project economics for smaller mining operations that have struggled to secure offtake agreements or financing. ReElement's strategic positioning extends beyond refining capacity.

The company is working with the US Department of Defense's Office of Strategic Capital and Vulcan Elements to develop a vertically integrated supply chain for rare earth magnets. Additionally, a partnership with South Korea's POSCO International Corporation focuses on expanding magnet production capabilities.

These collaborations reflect a broader shift in how critical minerals are categorised within national security frameworks. TEP's involvement brings global investment expertise and could support the deployment of ReElement's modular platform into international markets where similar supply chain vulnerabilities exist.

Mark Jensen, CEO of ReElement Technologies, explains: “We are excited to partner with Transition Equity Partners. Throughout this process, it became clear that we are closely aligned culturally and mission-wise – an alignment we believe is essential to addressing supply-chain challenges quickly while building long-term shareholder value.  

“The US$200m commitment will enable ReElement to expand its manufacturing base initially in the US and, over time, globally, to process and refine critical minerals and rare earth elements through a cost-competitive, modular and scalable platform.”  

Market response to the partnership has been notable. American Resources Corporation (AREC), which holds a minority stake in ReElement, has seen its share price increase by 276% between October 2024 and March 2025, outpacing the broader industry average of 21.6%.