HG Ventures, a venture capital investment firm and division of The Heritage Group that supports a sustainable future in materials, infrastructure, environmental solutions and industrial systems, announced that it has invested in and formed a strategic partnership with American Rare Earth LLC, a subsidiary of the American Resources Corporation to scale up recycling of batteries, magnets and e-waste to recover and supply critical and rare earth metals to U.S. and global markets and contribute to the circular economy. Through its investment, HG Ventures has an ownership stake in American Rare Earth, as well as rights and warrants for subsequent investment.
The companies will pair American Rare Earth’s recycling technology and capabilities processing waste materials to recover and produce raw materials, with HG Ventures’ and The Heritage Group’s industry knowledge and supply chain expertise and connections to scale U.S. rare earth and critical metals production to supply manufacturers of electric motors and magnets.
With American Rare Earths’ first purification facility expected to be operational in the first half of 2022, this partnership further strengthens American Rare Earth’s foothold into various feedstock relationships for battery and magnet material including from spent electric vehicle and windmill motors and e-waste for which there is currently no comprehensive, sustainable, end-of-life solution. Additionally, the partnership opens up relationships with public and private customers demanding these purified metals to drive the growth and success of the electrification and clean tech markets while advancing national security interests.
American Rare Earth and Heritage are expediting the path to being the United States’ first and lowest cost producer of domestically-sourced, purified and sustainable battery and magnet metals. “We look forward to partnering with American Rare Earth to expand production of rare earth elements and critical metals by recycling electric motors, batteries and other e-waste, which will help address U.S. supply chain and sustainability challenges,” said Jonathan Schalliol Director at HG Ventures. “As demand for batteries and smart electronics soars, this partnership aims to help drive growth in the U.S. raw materials market to expand our country’s domestic manufacturing capabilities. The U.S. has the opportunity to lead in closed-loop and circular material supply, and it starts with this type of cross-sector collaboration.”
The partnership will also enable Heritage portfolio companies to work directly with American Rare Earth and utilize their technology and processes to produce rare earth and critical metal raw materials. “We are thrilled to team up with HG Ventures and benefit from their outstanding expertise, network and shared vision to redefine how critical and rare earth elements are sourced, processed and purified as part of a sustainable, circular supply chain,” said Mark Jensen, CEO of American Resources Corporation. “Scaling up a closed-loop and circular supply of these increasingly important materials will bring impactful solutions to the domestic supply of rare earths and critical metals, and enable the U.S. to compete on a global basis.”