And we can scale our, design our facility to match the CapEx with the feedstock available. One of our competitors just announced that, they are evaluating the sale of their business. They were trying to build a refinery that was about five times the size of the current market availability. That is a recipe for failure. We instead design our facility, based on the current feedstock available and then we can modularly scale them up over time. We are matching CapEx with feedstock as well as OpEx with feedstock. So that there is no – from a cost structure perspective, we are able to very, very efficiently expand our business. But that gives us the ability to go to the ores as well as the recycled market and expand our footprint globally to benefit from the technology in itself.
Sorry for long answer.
Mark Stone: Yes. Okay. So a separate question. Can you please tell us the plans and timelines for getting to non-trivial revenue generation from rare earth oxide separation?
Mark LaVerghetta: If I gave you guys time frames, you would all yell at me. We do our best to achieve them, but some things are outside of our control. I will do my best though. So our Marion facility is where – our customer qualification plan can significantly expand our production and we are doing that as we speak. We have been qualified at a number of different customers currently, and are further progressing with those customers. We have off takes on the rare earth side. We have off on the battery side, getting the meaningful revenue will be in 2024. Now that being said, we are generating service revenue as we speak right now through our Japanese partnership. More to come on that in the next couple of days. But the ability to further scale the business and the unique thing is our cost structure is extremely low.
We are strategic in the team members that we are hiring, to keep our costs low until we get to that meaningful revenue generation, which is coming. It is coming quickly. I don’t want to give you an exact date because if I miss by a little bit, I will get slapped for it.
Operator: Our next question comes from Steve Segal with KBB Asset Management. Your line is open.
Steve Segal: I was reading today about the life cycle news, and I hadn’t really known that much about the company, but I read more about it and I see they had multiple shredding facilities and they mothballed, I guess, their HydroMet facility and it seems like chromatography is a much better solution than what they were trying to do. So is there any interest on ReElement in like, you know, talking with them about some of their assets or collaborating at all?
Mark LaVerghetta: I mean, we will look at the assets and we will reach out to their adviser that they hired with regards to the shredding operations, not with regards to the refining capacity they were trying to build, that announcement.
Steve Segal: You have a better solution, right?
Mark LaVerghetta: Yes. It showcases that legacy ways of refining commodities does not work. It works in China because they already built it and they don’t care. I mean, they are in inner Mongolia, labor and environmental standards there are very low. That technology does not work in the United States. It does not work in Africa, it doesn’t work in Europe. And you are going to see more of that, in my opinion, in the United States where people are going to mothball solvent extraction facilities because it is not, it is not cost effective and it is extremely expensive to build. More importantly, it is extremely expensive to operate over time. You can maybe get it up and running, but you will not run it for over 10-years without having significant maintenance CapEx. You are dealing with really harsh emulsion of chemicals.
Chromatography is a game changer in the space. One, because we can design it based on the scale of available material. And so that gives us the opportunity to build anywhere throughout the world and do it quickly. And we are going to showcase that here very shortly to our shareholders and through the relationships that we are building to date. Would we have interest in their shredding operations? Yes, we would. I mean, through the American Metals business line, we would be interested in acquiring that. But more importantly, instead of hub and spoke, we will put a chromatography facility in each one of their shredding operations and show the world how to do it the right way. Do it in a way that that is cost effective. Costs matter, the automotive industry, and especially in the EV chain, are losing money right now.
They need to focus on controlling their costs. They are building great business models for the long-term, but they got to refine the cost structure. We can do that. We can provide cost effective solutions that go head to head against China and displace them in markets that they are already trying to operate in, especially within Africa.
Operator: Our next question comes from Keith Goodman with Maxim Group. Your line is open.
Keith Goodman: Hey guys, quick question going back to Africa and Japan and Germany and other places that you said you are working with. First of all, does any work that you may do there, get you to qualify for the inflation reduction? And two, it sounded like you are saying that you are going to take equity ownership or maybe some type of economic ownership of some of the mines there. Does that mean you would pay for something like that or would you bringing the technology over there get a low cost way of owning the, you know, a partnership?
