REalloys Inc. (NASDAQ: ALOY), a U.S.-based mine-to-magnet rare earth company, announced plans to build the largest heavy rare earth metallization facility outside of China, in partnership with the Saskatchewan Research Council (SRC). The facility, expected to cost approximately $40 million, is fully financed and designed to comply with 2027 U.S. defense procurement bans on Chinese sourcing.
The equipment for REalloys’ heavy rare earth metal facility (HREMF) will be built in Saskatoon, Saskatchewan, in collaboration with SRC. After commissioning and initial test runs, the equipment is anticipated to be relocated to Ohio to serve downstream U.S. defense industrial base customers and supply the U.S. Defense Logistics Agency’s strategic rare earth stockpiles. REalloys will own 100% of the HREMF, which will integrate with its current metallization operations in Euclid, Ohio—the only heavy rare earth metallization capability currently operating in North America.
Initial operations are targeted for early to mid-2027, with full commercial scale expected in mid-to-late 2027. The HREMF will be the first and only commercial-scale heavy rare earth metallization platform with zero-Chinese nexus, coming online as U.S. defense procurement waivers expire. The facility aims to resolve the industry’s core bottleneck: secure North American metallization of dysprosium (Dy) and terbium (Tb) for high-performance defense magnets.
This initiative builds on a partnership first announced in December 2025, where REalloys invested in expanded production capacity at SRC’s Rare Earth Processing Facility (REPF) in Saskatoon in exchange for 80% of its output. The REPF is expected to produce high-purity neodymium-praseodymium (NdPr) metal and Dy and Tb oxides, which will be further processed at REalloys’ HREMF. The company believes this alignment will establish a fully allied source of Dy and Tb metals for defense and advanced manufacturing supply chains.
The project marks a pivotal step in creating North America’s first integrated heavy rare earth value chain, linking resource security and midstream processing in Canada with downstream metallization and manufacturing in the United States. SRC’s REPF, the first and largest commercial-scale rare earth processing facility in North America, provides the proven technical base for this project.
“The establishment of heavy rare earth metal production on U.S. soil is a defining moment for North American industrial strategy,” said Stephen duMont, Chairman of REalloys. “This is not a pilot plant; this will be full scale commercial capacity, built with zero Chinese nexus, AI-enabled process optimization, and full compliance with Title 50 defense sourcing requirements.”
Mike Crabtree, President and CEO of SRC, added, “The REalloys–SRC partnership demonstrates what coordinated innovation between public and private industry can achieve. This partnership creates the Western hemisphere’s first end-to-end rare earth metal capability.”
The HREMF is expected to produce roughly 30 tonnes of dysprosium and 15 tonnes of terbium metal annually. With the completion of its recent $50 million financing, REalloys is fully funded to advance the project. For more information, visit www.realloys.com and www.src.sk.ca.
