AI Transportation, American Metals execute business combination agreement

American Resources Corporation’s (AREC) wholly-owned subsidiary, American Metals and AI Transportation Acquisition Corp (AITR) announced that American Metals and AITR have executed a definitive business combination agreement for a proposed business combination in a transaction valued at $170,000,000. Pursuant to the Business Combination Agreement, each of AITR and American Metals will become wholly-owned subsidiaries of a newly formed Delaware corporation, Electrified Materials Corporation, which will serve as the parent company of AITR and American Metals following the consummation of the Business Combination. It is anticipated that the combined company will be listed on the Nasdaq Stock Market under the ticker symbol “EMCO.” American Metals is a cutting-edge recycler of metals to the electrified economy and processor of used metals and minerals to be recycled and further refined into new steel-based, battery-grade and magnet-grade products. Today, American Metals operates within the U.S. with its origins being the reclamation of former thermal coal mines. By leveraging its regional logistics and infrastructure as well as its knowledge and affiliation with ReElement Technologies Corporation, an industry-leading refining technology platform, American Metals expects to expand its presence in the high-growth market of used steel, rare-earth elements, battery materials while also cleaning up old infrastructure left behind from the declining mining industry. The exploding demand for these metals worldwide is expected to result in an undersupply, threatening the realization of the energy transition. Despite their scarcity, the recycling rate for many critical metals is below 5%, with total recycled metals in batteries currently around 1%, and recycling rate of certain rare earths even below 1%, according to the World Economic Forum’s April 24, 2024 report.(1) American Metals is uniquely positioned to be a leading producer of critical metals while contributing to a reduction in global greenhouse gases. Importantly, American Metals has also established a complete closed-loop supply chain for such materials through its non-exclusive partnership and current affiliation with ReElement Technologies to refine such material to battery and magnet grade. The completion of the Business Combination is subject to regulatory approvals, the approval of the transaction by the shareholders of AITR and American Metals, and the satisfaction or waiver of other customary closing conditions.