American Resources Corporation (AREC) might just be sitting on a ticking time bomb of value. While the market has been fixated on the company's coal operations and the upcoming spin-offs of American Carbon and ReElement Technologies, a crucial detail hidden in plain sight within the Q1 2024 earnings call transcript reveals a potential for explosive growth.

The company’s CEO, Mark Jensen, casually dropped a bombshell: "We produce lithium carbonate every day now." This seemingly innocuous statement carries significant weight. While ReElement Technologies' ability to refine lithium has been known, the fact that they are already producing lithium carbonate *daily*, coupled with the imminent expansion of their refining capacity, paints a picture of a company poised for a dramatic revenue surge.

Analysts have been patiently waiting for ReElement to start generating meaningful revenue. Jensen himself admitted on previous calls that feedstock acquisition had been challenging. But now, the tide has turned. Not only is ReElement refining lithium carbonate daily, but Jensen also revealed a key partnership: "We have a great partnership that we've been taking material in, and now we're getting ready to selling that back to them in a lithium carbonate form."

This suggests that ReElement has moved beyond mere sampling and validation with customers and is now actively fulfilling orders. Furthermore, Jensen hinted at additional offtake agreements in the pipeline: "A few of those [potential customers] said, we will legitimately take everything you can produce once we get through the qualification process."

The timing couldn't be more perfect. ReElement is on the cusp of a major capacity expansion. Their Marion, Indiana, Supersite, a 400,000 square foot behemoth, is nearing completion with a Certificate of Occupancy expected in the coming weeks. This facility is designed to produce 5,000 metric tons of battery-grade lithium carbonate per year, dwarfing their current Noblesville plant.

The confluence of these factors – daily production, existing partnerships, multiple offtake agreements in progress, and the imminent arrival of the Marion facility – strongly suggests that ReElement's revenue could skyrocket in Q2 2024 and beyond.

Projected Revenue Growth for ReElement Technologies

Even with a more conservative estimate of 50% capacity utilization at Marion, ReElement's revenue could still surpass $50 million annually, a significant jump from their current projected revenue.

Revenue Projection Chart (Millions USD)

This analysis indicates that ReElement is not just a story of future potential, it's a company already generating revenue with a clear path to rapid expansion. The market has yet to grasp the significance of ReElement's current operations and the imminence of their massive capacity increase.

When the Q2 2024 earnings call arrives, investors might just be in for a massive surprise. American Resources Corporation, and more specifically its ReElement Technologies division, could emerge as a major player in the lithium refining market, leaving analysts scrambling to reevaluate their models and investors reaping the rewards of their foresight.

"Fun Fact: American Resources Corporation is one of the few companies in the world that can profitably refine lithium iron phosphate (LFP) batteries, the dominant and fastest-growing lithium-ion battery chemistry globally. This gives them a significant competitive advantage in the burgeoning battery recycling market."