Company Overview
American Resources Corporation has emerged as one of the most compelling small-cap plays in the critical minerals space, with its ReElement Technologies subsidiary securing a massive $1.4 billion joint partnership with the U.S. Department of War Office of Strategic Capital announced in early November 2025. The deal includes $700 million in government loans matched by private capital to fund domestic rare earth separation, metallization, and magnet manufacturing – positioning AREC at the center of the administration’s push to break China’s rare earth monopoly.
Just yesterday, December 2nd, the company announced it will be attending the exclusive Honeywell Ventures Innovation Showcase on December 5th in Rosemont, Illinois, where ReElement’s Vice President of International Strategy will conduct commercial and government meetings. The timing is significant – AREC has been on a tear, with shares up over 175% year-to-date as investors wake up to the company’s strategic positioning in rare earth elements critical for defense applications including F-35 fighter jets, nuclear submarines, and advanced weapons systems.
Key Technical and Fundamental Drivers
Fresh Conference Announcement → December 5th Showcase Yesterday’s announcement that AREC will present at Honeywell’s invite-only innovation showcase signals growing institutional and government interest in their breakthrough refining technology, with commercial meetings planned.
Massive Government Backing → $1.4B Partnership The November Department of War partnership provides $700M in government loans plus matching private capital to scale rare earth production, with AREC receiving warrants in ReElement as the government becomes a strategic partner.
Analyst Price Target → $6.00 Upside D. Boral Capital maintains a “Buy” rating with a $6.00 price target, representing significant upside from current levels around $2.70-$2.80 and reflecting confidence in the critical minerals buildout.
Strategic Partnerships → Global Supply Chain Recent deals with Uzbekistan (tungsten supply) and ongoing collaboration with South Korean partners position AREC to dominate the Western hemisphere’s critical mineral refining capacity outside China’s control.
ReElement Spin-Off Catalyst → February Distribution The company plans to spin off ReElement as a standalone public company with a record date of December 31st and distribution February 15th, potentially unlocking significant shareholder value as the pure-play rare earth business gets its own ticker.
Market Takeaway
American Resources represents the perfect storm of government policy support, strategic timing, and small-cap breakout potential. With geopolitical tensions driving urgent demand for domestic rare earth production and the Department of War literally investing $1.4 billion in the company’s ReElement subsidiary, AREC has gone from obscure microcap to government-backed critical infrastructure play in a matter of months.
The December 5th Honeywell showcase happening this Thursday could serve as another catalyst if ReElement announces new commercial partnerships or additional government contracts. With the stock already up 175% year-to-date but still trading around $2.80, early positioning ahead of the February ReElement spin-off could offer significant opportunity. The rare earth market is projected to grow exponentially as defense, EVs, and renewable energy all require these materials, and AREC’s patented chromatographic separation technology provides a cleaner, more efficient alternative to traditional Chinese processing methods. Traders should watch for any announcements coming out of this week’s Honeywell event and monitor the progress toward the ReElement separation, which could create two publicly-traded companies where there’s currently one.