American Resources Stock Is Surging Thursday: What's Going On?

American Resources Corp AREC shares are trading higher. The company on Thursday unveiled a new rare earth leaching solution to extract value from coal and mine waste.

What Happened: American Resources announced that it’s developing a modular, mobile and scalable leaching solution to allow for the extraction of rare earth concentrates from coal and other mine waste.

The company plans to deploy the leaching solutions across its properties and license units to landowners and mining operators across the globe. The leachate produced will then be supplied to ReElement Technologies as feedstock to be refined into “ultra-pure” rare earth products for domestic and allied-nation magnet manufacturers.

“This is a pivotal moment for our country – one where we must, and will, break China’s dominance over the global critical mineral supply chains which are essential to our national defense and security,” said Mark Jensen, chairman and CEO of American Resources and ReElement.

“ReElement has proven its ability to produce rare earth oxides from a diverse range of feedstocks, including end-of-life permanent magnets, virgin ores, and coal and mine waste streams.”

American Resources said initial testing at its property in West Virginia showed a concentration of over 500 ppm of rare earth content. The company’s new leaching solution is expected to help raise additional capital through royalty-based revenue. American Resources also said it’s evaluating capitalization strategies, including a Form D offering and the potential use of a tokenized platform.

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The news comes with shares of metals and mining companies in the spotlight following reports the Trump administration plans to stockpile deep-sea metals to counter China.

The move is focused on countering China’s rare earth supply chains and battery mineral dominance as the U.S. aims to become self-sufficient when it comes to critical minerals supply.

President Donald Trump ordered a probe on potential new tariffs on all U.S. critical minerals imports earlier this week, per Reuters, further escalating the ongoing trade war with China.

“The dependence of the United States on imports and the vulnerability of our supply chains raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience,” Trump reportedly said in the order.

The move comes after China put export restrictions on several rare earth minerals and magnets in response to reciprocal tariffs from the Trump administration. China produces around 90% of the world's refined rare earths, according to the U.S. Geological Survey.

AREC Price Action: American Resources shares closed Wednesday up 83.4%. The stock was up another 25.1% Thursday morning, trading at $1.38 at the time of publication, according to Benzinga Pro.

Photo: RHJPhtotos/Shutterstock.