The Defense Logistics Agency has awarded a contract to Terves LLC, a subsidiary of REalloys Inc., to scale next-generation metallothermal processes for samarium and gadolinium metals. This contract represents a significant step toward re-establishing U.S. commercial-scale production of these critical defense materials, capabilities that currently do not exist domestically.
With the United States currently 100% dependent on foreign sources for these metals, the DLA contract serves as a historic breakthrough for national security. The contract advances REalloys' direct metallothermal processing platform, including zero-waste rare earth metallization technology, and positions the company as a first-mover in domestic production. Global supply of these metals remains almost entirely offshore, leaving U.S. defense and industrial users exposed to geopolitical risk, long lead times, and price volatility.
The DLA contract will advance REalloys' gadolinium metallization capability while adding direct samarium metal production from mixed rare earth feedstocks, addressing a long-standing bottleneck in U.S. samarium supply. Samarium and gadolinium metals are essential inputs for high-temperature samarium-cobalt permanent magnets, precision guidance systems, aerospace and radar applications, advanced optics, and other defense technologies that require materials capable of operating in extreme thermal and radiation environments.
REalloys' approach differs from conventional rare earth processing, which typically relies on large, capital-intensive solvent extraction plants. Instead, the company is developing a modular, semi-continuous processing architecture that enables direct reduction of Samarium-Europium-Gadolinium feedstocks into high-purity metals. Gadolinium metal is produced through low-temperature, zero-waste metallothermal reduction, including in alloyed forms such as Gadolinium-Cobalt.
This DLA contract will allow REalloys to scale this process while completing full plant designs covering both wet chemistry and reduction-to-metal operations. A central deliverable is the engineering design for a 300 ton/year production facility built around modular reactors that can be rapidly deployed, replicated, and scaled to meet both steady-state and surge demand from the Department of War and commercial markets. More information about the company can be found at https://www.realloys.com.
REalloys has filed a provisional patent covering its direct reduction of SEG feedstocks and the zero-waste metallization process, underscoring the proprietary nature of the platform. By eliminating the need for large solvent extraction facilities and enabling direct recycling of all byproducts, the company aims to significantly reduce capital requirements, cut production costs by up to 50%, shorten deployment timelines, and enable distributed domestic production aligned with U.S. defense and industrial policy priorities.
Samarium-cobalt magnets are the only magnetic material capable of withstanding the extreme heat of fighter jet engines and the supersonic friction of precision-guided munitions, while gadolinium is essential for both stealth radar technology and the safety control rods in nuclear reactors. By establishing a sovereign source for these high-heat and neutron-absorbing metals, REalloys is securing the foundational components required for the next generation of American aerospace, defense, and energy independence.
The DLA manages the global supply chain for the Department of War, NASA, and numerous other government agencies. Through its DLA Strategic Materials division, the agency also manages the National Defense Stockpile, charged with securing domestic sources of rare earths to decrease reliance on foreign supply chains. This contract directly addresses the strategic vulnerability created by U.S. dependence on offshore sources for these critical defense materials.
