Subsidiary plans to expand Indiana factory rare earth oxide production capacity, American Resources (AREC.US) rises in pre-market trading in response.

American Resources (AREC.US) saw a significant 10.08% increase in pre-market trading on Monday as its subsidiary, ReElement, announced plans to expand production equipment at its Noblesville plant in Indiana to meet the growing demand for domestic rare earth oxides in the domestic market. The company stated that the second phase expansion project was completed in less than three weeks from design to production, doubling the factory's rare earth oxide finished product capacity. The third phase expansion project has already begun, with new equipment expected to be delivered within 6-8 weeks, increasing production capacity to three times that of the second phase. This increase in production capacity will significantly increase the daily processing volume of key rare earth elements such as neodymium, praseodymium, dysprosium, and terbium at the plant. Mark Jensen, CEO of ReElement, said that the Noblesville plant was not originally built for commercial production, but with the rapid increase in customer demand especially after recent changes in global trade patterns the plant has become an integral part of their operations, while they continue to advance the construction of the larger Marion plant.