South African multidisciplinary asset manager Novare and ReElement Technologies Corporation, a subsidiary of Nasdaq-listed American Resources Corporation, have announced a R1.8-billion rare earth and critical battery elements refining facility in Africa.

Development of the facility is expected to begin in the second half of this year.

This milestone agreement is a step towards establishing Africa's first critical and rare earth element refining facility, focused on producing high-purity elements essential for advanced technologies in both the commercial and defence sectors.

The facility will use ReElement’s technology to produce high-purity lithium carbonate, rare earth oxides and other critical minerals. It will use locally sourced feedstock and skills to support the growing demand in the battery and defence industries within both Africa and North America.

“Novare is excited about this collaboration's potential for securing reliable and quality critical mineral supplies. It aligns . . . with our vision of being an impactful investor by establishing sub-Saharan Africa’s first battery and critical minerals manufacturing facility. Through this partnership, we are confident that value addition and resource beneficiation can be achieved locally,” Novare CEO Ola Leepile said on February 10.

ReElement Technologies Africa will contribute its chromatographic separation and purification platform technology along with project management expertise, while Novare will provide the necessary capital investment and operational management.

ReElement has successfully developed its chromatographic, multi-mineral, multi-feedstock technology solution which can separate, purify and refine rare earth and critical elements.

"Together with Novare, we are bringing innovative refining technology to the region, enabling nations to enhance and capture the value of their natural resources and catalyse industrial economic development on the continent.

“Novare will [model] how African nations can and must serve as primary stakeholders in the global supply chain for critical minerals,” ReElement Technologies Africa CEO Ben Kincaid said.

ReElements said that, as it expands and scales production across its own and partner facilities, it will play a key role in reducing US dependence on foreign sources of critical raw materials while also fostering a circular lifecycle solution.