American Resources Expands Battery Recycling Capabilities with Initial Shredding Line Purchase

American Resources Corporation announced that its wholly owned subsidiary, Electrified Materials Corporation (EMCO), has procured its first battery shredding line, expanding the company’s ability to process lithium-ion batteries and produce conditioned feedstocks for downstream refining.

According to the company, the new shredding system complements EMCO’s existing operations focused on recovering and conditioning magnet materials, copper, aluminum, and ferrous metals from end-of-life products and manufacturing scrap. The added capacity will enable EMCO to provide battery collection, shredding, pre-processing, and conditioning services for end-of-life, off-warranty, and off-specification lithium-ion batteries.

The investment strengthens the connection between EMCO’s front-end recycling operations and the refining capabilities of ReElement Technologies Corporation, another American Resources subsidiary. The company said battery materials processed by EMCO will be supplied to ReElement for separation, purification, and refining into higher-value products.

EMCO’s initial focus will be on lithium iron phosphate (LFP) batteries, a battery chemistry that has seen rapid adoption in electric vehicles, energy storage systems, commercial fleets, and industrial applications. While LFP batteries offer advantages in cost, safety, and durability, their lower nickel and cobalt content has historically made them less attractive for conventional recycling operations.

American Resources said its recycling model is designed to address this challenge by leveraging ReElement’s refining technology to recover value primarily through lithium extraction rather than relying on nickel or cobalt recovery. The company stated that it has validated a techno-economic pathway for LFP recycling based on lithium recovery economics.

The strategy reflects a broader shift in the battery recycling sector as LFP batteries gain market share globally. Traditional recycling economics have largely been driven by the recovery of high-value metals such as nickel, cobalt, and copper. As battery chemistries evolve, recyclers are increasingly seeking alternative approaches that can economically process lower-value but higher-volume battery materials.

“This is another important step in our strategy to build a comprehensive domestic critical mineral supply chain,” said Mark Jensen, chairman and chief executive officer of American Resources. He said the company’s refining-first approach allows it to develop complementary recycling and pre-processing capabilities while reducing supply chain risks.

Chris Dreska, chief executive officer of Electrified Materials Corporation, said the new shredding line marks a key milestone in the company's expansion into lithium-ion battery recycling. He noted that the partnership with ReElement provides a pathway to recycle LFP batteries without depending on nickel or cobalt values to support project economics.

According to the company, EMCO’s platform is being designed to process multiple battery chemistries, including LFP, nickel manganese cobalt (NMC), lithium cobalt oxide (LCO), lithium manganese oxide (LMO), and emerging battery technologies. The company said the system is intended to support customers seeking domestic recycling and refining solutions for battery materials that might otherwise be exported, landfilled, or processed through less efficient channels.

The battery shredding line follows EMCO’s previously announced investments in critical mineral pre-processing capabilities. Together, these initiatives are intended to support the development of a domestic US circular supply chain for battery materials, rare earth elements, and other critical minerals used in electrification, energy storage, defense, and advanced manufacturing applications.

Source: American Resources

SUNSHINE Spotlight: American Resources is expanding its battery recycling platform with a new shredding line aimed at creating an economically viable recycling pathway for LFP batteries through lithium-focused recovery and domestic refining.