HG Ventures, a venture capital investment firm and division of The Heritage Group based in Indianapolis, has formed a partnership with American Rare Earth LLC, a subsidiary of the American Resources Corp., Fishers, Indiana. The companies aim to scale up the recycling of batteries, magnets and e-waste to recover and supply critical and rare earth metals to U.S. and global markets.
According to a news release from HG, the company 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 and waste processing capabilities with HG Ventures’ industry expertise to scale U.S. rare earth and critical metals production.
“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,” says 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.”
With American Rare Earth’s first purification facility expected to be operational sometime during the first half of this year, this partnership strengthens American Rare Earth’s foothold into various feedstock relationships for battery and magnet material. Additionally, the partnership opens relationships with public and private customers demanding these purified metals to drive the growth and success of the electrification and cleantech markets while advancing national security interests.
The partnership also enables Heritage portfolio companies to work directly with American Rare Earth and use the company’s 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,” says Mark Jensen, CEO of American Resources Corp. “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.”