SA institutional investment firm Novare has invested in US-based rare earths refining group ReElement Technologies with commitment from the former expected to unlock about $150m in combined equity and debt financing.
The funding is expected to go towards expanding ReElement’s refining operations at its 42-acre Marion, Indiana supersite.
Rare earths are strategic minerals used in the manufacturing of smartphones, electric vehicles and military tech, among others.
Novare CEO Olaotse Leepile said the investment house was backing US innovation at “home and abroad,” supporting jobs and growth in Indiana and bringing long-overdue value addition and industrial development to the African continent.
“Additionally, as part of our broader strategic relationship, ReElement and Novare plan to collaborate on deploying refining capacity across Africa,” Leepile said.
“Novare has committed an initial $100m to support the development of localised, value-added refining solutions across SA and other key regions. This collaboration aims to strengthen Africa’s position in the global critical minerals value chain by processing its abundant natural resources domestically and more sustainably.”
While the specific investment amount was not publicly disclosed, the structure of Novare’s commitment is a two-year convertible note with a conversion price based on a $150m pre-money valuation for ReElement.
ReElement is actively working with leading US-based investment banks to structure and secure this project-level capital.
The $150m referenced represents the total anticipated funding for the initial phase of this project, comprising a mix of equity and debt financing.
Novare’s investment contributes to the equity portion of this capital stack. The final structure — including the debt-to-equity ratio — will be determined in collaboration with banking partners and project lenders.
“Based on current market conditions and precedent transactions in the infrastructure and energy transition sectors, we anticipate the equity portion to represent about 25% to 40% of the total capital stack,” Leepile said.
ReElement’s patented chromatographic separation technology was developed in collaboration with Purdue University, one of America’s leading research institutions.
ReElement holds exclusive commercialisation rights to the platform and continues to work closely with Purdue to enhance and scale its application for critical mineral refining.
Mark Jensen, CEO and chair of ReElement, said the company’s process offers a faster, lower-risk path to scale versus conventional solvent-based systems dominated by Chinese refiners.
“This is a historic moment. With Novare as our anchor investor, we are not just expanding capacity — we’re reshaping the global critical minerals supply chain. Together, we’re proving that African capital can invest in America’s best technology and that same technology can deliver lasting value back to Africa,” Jensen said.
“Our near-term goal is to maximise capacity at Noblesville to more than 200 tonnes per annum as we build out Marion. We are currently ordering and quoting specific equipment for Marion which will become the largest diversified critical mineral refinery in the US, serving both commercial and defence markets.”
China, the world’s second largest economy, is the world’s biggest miner and processor of rare earths.
The Asian economic powerhouse accounts for about 61% of rare earths extraction and 92% of refining, according to the International Energy Agency.
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