REalloys Inc. (NASDAQ: ALOY), a U.S.-based midstream rare earth processing innovator, has received a formal memorandum from the Department of War recognizing the urgency of securing domestic heavy rare earth element (HREE) supply chains before the January 2027 prohibition on Chinese-origin rare earth materials. The memorandum, delivered to REalloys’ leadership team, designates dysprosium (Dy) and terbium (Tb) as two of the most critical and highest-value HREEs, aligning with the company’s strategic intent to build HREE processing facilities within North America.
The Department of War’s memorandum underscores a whole-of-government approach to fortifying America’s HREE supply chain through financial investment, strategic policy, and expanded public-private partnerships. REalloys operates the only heavy rare earth metallization platform in North America and is scaling its platform by building the largest heavy rare earth metallization facility outside of China, purpose-engineered to produce defense-grade dysprosium and terbium metal at commercial scale with a zero-adversary-nexus supply chain compliant with 10 U.S.C. §4872 and DFARS 252.225-7052.
The company’s integrated platform is anchored by a long-term offtake securing 80% of the output from the Saskatchewan Research Council’s commercial rare earth processing facility, a patent-pending hydrofluoric-acid-free fluorination process, and upstream domestic feedstock from the highest-grade rare earth deposits across allied nations. REalloys is actively advancing through the Defense Industrial Base Consortium’s rigorous qualification pathway to deliver compliant, defense-grade heavy rare earth metals to the Department of Defense, the Defense Logistics Agency, and the Defense Industrial Base on an accelerated timeline as Chinese-origin sourcing prohibitions take full effect in January 2027.
“We believe that the memorandum is a direct reflection of how seriously the Department of War is treating the HREE supply chain challenge and how well REalloys is positioned to align with what the defense industrial base urgently needs,” said Joe Kasper, Head of Government Relations and Chair of REalloys’ Advisory Board. “It’s also indicative that REalloys has envisioned and is scaling the only North American resource with the full technical capability to guarantee a zero-adversary-nexus supply chain to meet the impending 2027 deadline.”
General Jack Keane (Ret.), Board Director of REalloys and former Vice Chief of Staff of the U.S. Army, added, “For decades, critical material dependencies have represented one of America’s most consequential strategic vulnerabilities. The Department of War is correctly prioritizing the development of domestic HREE processing capacity; building a sovereign, zero-adversary-nexus supply chain is a fundamental national security imperative.”
“The Department of War’s focus on expanding domestic processing capacity is precisely the mission REalloys has been focused on,” said Stephen duMont, Chairman of REalloys. “The solution we’re building, from commercial-scale processing to innovative metallization and downstream manufacturing operations, is purpose-engineered to lead the industry in answering the call to resolve defense-grade sourcing and supply challenges on the horizon.”
REalloys’ integrated mine-to-magnet supply chain includes the Hoidas Lake rare-earth asset in Saskatchewan, a diversified network of allied feedstock partners, and downstream manufacturing operations in Euclid, Ohio, where the company produces advanced heavy rare earth metals, alloys, and magnet components for defense, energy, and high-performance industrial applications. The company’s Ohio facility serves federal logistics and procurement agencies supporting the Department of Defense, the Department of Energy, and NASA, in addition to the broader Defense Industrial Base.
The memorandum is not a technical endorsement of REalloys or its commercial partners, and no assurance can be given that it will result in any contract or procurement award. However, the company believes the memorandum aligns with its intent to develop and secure a sovereign HREE supply with zero China nexus in accordance with the Department of War’s published defense strategy.
