Key facts
- The U.S. is investing in rare earth supply chains to reduce reliance on China, particularly for heavy rare earth elements.
- REalloys is building a vertically integrated mine-to-magnet supply chain in North America.
- China has implemented export restrictions and licensing requirements for rare earth materials.
- REalloys secured feedstock agreements and is developing metallization and magnet manufacturing capabilities.
- The U.S. Army and Defense Logistics Agency are supporting REalloys' efforts in heavy rare earth processing and metallization.
The United States is intensifying efforts to establish a domestic rare earth supply chain, particularly for heavy elements critical to defense applications, in response to China's tightening export controls. REalloys is at the forefront of this initiative, aiming to create a comprehensive mine-to-magnet platform independent of Chinese materials.
Beijing has been systematically tightening its grip on the global rare earth industry through licensing requirements, export controls targeting specific companies like MP Materials and USA Rare Earth, and a robust enforcement system. This strategy aims to pull more value back into China by making it difficult for foreign manufacturers to obtain essential heavy rare earths like yttrium, dysprosium, and terbium, thereby positioning Chinese manufacturers as suppliers of finished products.
In response, REalloys is assembling all stages of the rare earth industry in North America. The company has secured exclusive commercial agreements for heavy rare earth feedstock, including from the Saskatchewan Research Council and an offtake agreement with Critical Metals Corp. for materials from Greenland. REalloys is also expanding its feedstock pipeline through partnerships in Brazil, Montana, Wyoming, and Kazakhstan.
Midstream, REalloys is addressing China's dominance in metallization, the process of converting rare earth oxides into high-purity metals. The U.S. Defense Logistics Agency has awarded REalloys a contract to design a modular facility for producing samarium and gadolinium metals. Furthermore, REalloys plans to build the largest heavy rare earth metallization facility outside China, capable of producing significant quantities of dysprosium and terbium metal annually. This facility's equipment will be built in partnership with SRC before being relocated to REalloys' operations in Ohio.
Downstream, REalloys is developing its permanent magnet manufacturing capabilities. The company recently raised approximately $100 million from institutional investors to accelerate its integrated platform. This financing will support the expansion of processing, metallization, and downstream manufacturing as REalloys moves toward commercial production. The U.S. Army is also involved, negotiating direct rare earths processing at an American military base.