Key facts
- REalloys will build and operate the first commercial critical mineral processing facility on a U.S. military installation at Tooele Army Depot in Utah.
- The facility will focus on refining dysprosium and terbium, critical for defense systems.
- Operations are slated to begin by 2028, preceding a January 1, 2027, ban on Chinese rare earth materials for U.S. defense contracts.
- REalloys has secured various feedstock agreements and processing capabilities, including a partnership with the Saskatchewan Research Council.
- Key defense contractors like Lockheed Martin, RTX, and Northrop Grumman must transition to non-Chinese rare earth materials by the 2027 deadline.
The U.S. Army is taking a significant step to reduce reliance on China for critical rare earth elements by selecting REalloys to build and operate the nation's first commercial heavy rare earth processing facility on a military installation. Located at the Tooele Army Depot in Utah, the complex is designed to refine dysprosium and terbium, vital components for high-temperature permanent magnets used in defense systems.
This initiative is part of a broader U.S. strategy to rebuild its domestic rare earth supply chain, aiming for initial operating capability by 2028. This timeline is critical as it precedes the January 1, 2027, federal procurement ban on Chinese rare earth materials for American defense systems. REalloys plans to finance, build, and operate the facility under an Enhanced Use Lease structure, maintaining private ownership and operations on federal property.
REalloys has already established a significant portion of its heavy rare earth platform, including feedstock agreements, processing rights, and metallization technology. The company has invested approximately $20.6 million in upgrades at the Saskatchewan Research Council's rare earth processing facility, securing exclusive supply rights for a substantial portion of its expanded output. Furthermore, REalloys is constructing a dedicated heavy rare earth metallization facility and has secured offtake agreements from projects in Greenland and Montana, alongside a proposed supply framework with Ramaco Resources.
The U.S. government's efforts extend beyond this single facility, encompassing procurement restrictions, defense contract awards, and accelerated qualification programs. This coordinated approach aims to reconstruct an industry that has been largely dominated by China for decades. Major defense contractors such as Lockheed Martin, RTX, and Northrop Grumman are under pressure to transition their supply chains away from Chinese rare earth materials by the 2027 deadline, as these elements are crucial for advanced defense systems like the F-35 fighter jet and the B-21 Raider bomber.
REalloys is also working to qualify its North American-produced rare earth materials for defense-grade applications by the end of 2026, enabling customers to validate these components ahead of the procurement deadline. This comprehensive effort represents one of the most coordinated industrial reconstruction initiatives undertaken by the United States in recent decades.