Key facts
- REalloys and JS Link will create a North American rare earth magnet manufacturing platform.
- The U.S. Army is in exclusive negotiations with REalloys for rare earth processing facilities.
- China has imposed export controls on rare earth materials targeting U.S. companies.
- REalloys has secured multiple feedstock agreements for rare earth materials.
- A new heavy rare earth metallization facility is being funded by REalloys.
REalloys has entered into a strategic agreement with JS Link to establish a comprehensive rare earth magnet production platform in North America, aiming to break China's dominant position in the market. This collaboration integrates feedstock sourcing, separation, metallization, and permanent magnet manufacturing, aligning with U.S. efforts to build domestic industrial capabilities for critical defense and energy sectors.
The partnership is a significant step in rebuilding North America's rare earth supply chain, which is crucial for technologies like guided missiles, electric vehicles, and wind turbines. China currently dominates global production, granting it considerable leverage over industries vital to military modernization and the energy transition.
This initiative builds upon REalloys' prior selection by the U.S. Army for exclusive negotiations to develop heavy rare earth processing facilities in Utah. The agreement with JS Link adds the essential permanent magnet manufacturing capability, creating a complete mine-to-magnet industrial chain within North America.
REalloys CEO Lipi Sternheim emphasized the strategic importance of building magnet manufacturing capacity domestically, stating, "In rare earths, strategic advantage belongs to the country that builds the magnets. That’s the capability we’re building here in the United States."
The company has been actively assembling the industrial chain, including securing feedstock and establishing rare earth processing and heavy rare earth metallization capabilities. REalloys has committed approximately $20.6 million to expand the Saskatchewan Research Council's rare earth processing facility, securing preferred rights to a significant portion of its output, including neodymium-praseodymium metal and separated dysprosium and terbium oxides, with commercial production targeted for early 2027.
Further development includes funding a dedicated heavy rare earth metallization facility to convert dysprosium and terbium oxides into metals, intended to be the largest such operation outside China. Qualification-scale materials are expected by the fourth quarter of 2026, allowing customers to evaluate them ahead of commercial sales.
Feedstock security is addressed through a long-term offtake agreement for production from Greenland's Tanbreez project, a strategic alliance with the Sheep Creek rare earth deposit in Montana, and a proposed supply framework with Ramaco Resources for coal-hosted rare earth material from Wyoming. REalloys is also pursuing additional supply from domestic and allied sources.
The move comes as China tightens export controls, restricting designated U.S. firms from acquiring certain dual-use products, including rare earth materials. This approach follows the material itself, giving Beijing additional influence over global supply chains reliant on Chinese processing. China's Commerce Ministry cited national security as justification for these measures.
These developments underscore a shift in global supply chains, with export controls and sanctions becoming more prevalent. Companies like REalloys, capable of producing defense-qualified rare earth materials entirely within North America, are gaining strategic importance. Several U.S. defense manufacturers, including Kratos Defense & Security Solutions, Boeing, Northrop Grumman, and AeroVironment, stand to benefit from increased supply security and reduced dependence on Chinese processing, positioning them as integral to the next generation of American defense manufacturing.