American Resources Corporation (NASDAQ:AREC) said on September 21, 2026, that its majority-owned subsidiary, Electrified Materials Corporation (EMCO), has signed a binding Letter of Intent to acquire 100% of Blackion LLC in a proposed all-stock transaction. The deal remains subject to definitive agreements, customary closing conditions and any required corporate, regulatory or other approvals.
#Proposed transaction terms
Under the LOI, Blackion is valued at approximately $13.2 million. The consideration would consist of EMCO common stock valued using an agreed $275 million pre-money valuation of EMCO.
The proposed consideration would be issued in stages. Fifty percent would be issued at closing, followed by an additional 25% after 12 months and the remaining 25% after 24 months. The later issuances depend on continued strategic alignment and mutually agreed integration and participation objectives.
The announcement does not state that the acquisition has completed. Negotiation and execution of definitive agreements, customary closing conditions and any required corporate, regulatory or other approvals remain outstanding.
#Blackion’s role in the proposed combination
Blackion provides lithium-ion battery lifecycle and critical materials services, with operations and strategic relationships across the United States and international markets. Its activities include commercial feedstock origination, reverse logistics, battery lifecycle management, material recovery, commercialization, traceability and closed-loop supply-chain solutions.
EMCO said the proposed combination would add Blackion’s management team, customer and commercial relationships, and operating capabilities to its existing platform. The two companies have already worked together through commercial activities, giving them an opportunity to assess their capabilities, working practices and strategic alignment before pursuing the proposed transaction.
According to the announcement, EMCO expects the transaction to accelerate commercialization, reduce execution risk and broaden its ability to originate and manage critical material feedstocks at scale. These are expected outcomes described in connection with the proposed transaction, rather than completed results.
#Battery and critical materials platform
EMCO is developing a front-end platform covering material disposition, reverse logistics, aggregation, dismantling, preprocessing and conditioning. The platform is intended to connect with downstream processing and advanced refining through ReElement Technologies Corporation and other strategic partners.
The companies identified lithium-ion battery materials as a central area of focus. These materials include lithium iron phosphate, manufacturing scrap, black mass and other battery-derived critical mineral feedstocks. The platform also covers rare earth magnet materials recovered from end-of-life products and industrial waste streams.
Under the companies’ strategic collaboration, feedstocks aggregated or processed through EMCO may be further refined by ReElement where commercially appropriate. The announcement identifies the potential recovery and production of technical- and battery-grade lithium products and other critical battery materials as part of that model.
#Battery lifecycle and feedstock activities
The announcement highlights lithium iron phosphate batteries as an area where logistics, preprocessing, scale and recovery of lithium and other constituent materials are important to recycling economics. EMCO has been expanding its activities in battery disposition, dismantling, destruction and processing, while ReElement’s refining platform provides a route for processing battery-derived feedstocks.
Blackion’s lifecycle management experience, commercial relationships and feedstock origination network are expected by the companies to support EMCO’s work across lithium iron phosphate and other battery chemistries.
EMCO is also pursuing activities involving rare-earth-bearing electronic waste and permanent magnet materials, including materials recovered from data-center hard disk drives and other end-of-life products.
#Risks and conditions
The release states that the proposed acquisition remains conditional on definitive documentation, customary closing conditions and any required corporate, regulatory or other approvals. The deferred stock issuances are also subject to continued strategic alignment and mutually agreed integration and participation objectives.
American Resources further stated that its forward-looking statements involve known and unknown risks and uncertainties, and that actual results, performance or achievements could differ materially from those expressed or implied. The company said it cannot assure that projected results or events will be achieved.
#Key Takeaways
- EMCO, a majority-owned subsidiary of American Resources, has signed a binding LOI to acquire 100% of Blackion LLC.
- The proposed all-stock transaction values Blackion at approximately $13.2 million, based on an agreed $275 million pre-money valuation of EMCO.
- Consideration is planned in three stages: 50% at closing, 25% after 12 months and 25% after 24 months, subject to stated conditions for the later issuances.
- The proposed combination would bring Blackion’s battery lifecycle, feedstock origination and commercial capabilities into EMCO’s platform.
- The transaction remains subject to definitive agreements, closing conditions and any required approvals.
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