Tuesday, June 9, 2015

American Rare Earths and Materials Corp. (AREM) Looks to Expand Presence in Global Rare Earth Minerals Market

Since 2002, American Rare Earths and Materials Corp. (OTC: AREM) has grown into a leader in the commercialization of rare earth metals – including Scandium, Neodymium, Europium and Lithium – by quickly delivering revolutionary new products to consumer and industrial markets. This dedication to innovation has helped the company gain significant exposure in potentially expansive industrial categories such as transportation, shipbuilding, power transmission, automotive and aerospace.

According to a report by the U.S. Geological Survey, China is the dominant producer of the world’s output of rare earth minerals, but countries have increasingly searched for other sources of the materials in protest of China’s quota systems, which have historically limited the export of these strategically important minerals. In January, The Wall Street Journal reported that China had dropped these exportation limits as a result of pressure from the World Trade Organization, but the system’s effect on the global reliance on Chinese suppliers will continue to resonate moving forward. Since 2012, China’s global share of rare earth output fell from 93 percent to approximately 86 percent, highlighting the immense market potential for American Rare in the years to come.

American Rare has undergone a swift and aggressive transition since 2010, better positioning the company to take advantage of the evolving rare earth metals market. In particular, the company has established a unique vertical in the sports equipment and apparel market through the continued extraction of pure Scandium. According to the company’s website, American Rare’s source for Scandium, as well as the other rare earth metals, could be among the largest in the world today with a current Scandium capacity totaling 50,000kg of oxide each year. If mined to capability, this would represent 95 percent of the annual global capacity for the rare earth mineral.

As global consumption of rare earth metals continues to rise, American Rare is in a strong strategic position to expand its presence within the industry. The company’s unique standing within the global market could provide the opportunity for significant investor returns in the future.

For more information, visit www.americanrare.com

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