REalloys Inc. (NASDAQ: ALOY), a U.S.-based midstream rare earth processing innovator, has received a formal memorandum from the Department of War underscoring the urgency to secure domestic heavy rare earth elements (HREE) ahead of the January 2027 prohibition on Chinese-origin rare earth materials. The memorandum designates Dysprosium (Dy) and Terbium (Tb) as two of the most critical and highest-value HREEs, aligning with REalloys’ strategic intent to build HREE processing facilities within North America.
The memorandum recognizes the Department’s comprehensive approach to fortifying America’s HREE supply chain and signals renewed support through financial investment, strategic policy, and expanded public-private partnerships. It is not a technical endorsement of REalloys or its commercial partners but affirms the national security priority of HREEs.
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. The Company’s supply chain is designed to comply with 10 U.S.C. §4872 and DFARS 252.225-7052, ensuring a zero-adversary-nexus supply chain.
The Company’s integrated platform includes 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 that eliminates one of the most hazardous chemicals in conventional rare earth metallization, and upstream domestic feedstock from high-grade rare earth deposits across allied nations.
Joe Kasper, Head of Government Relations and Chair of REalloys’ Advisory Board, stated: “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. 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, commented: “For decades, critical material dependencies have represented one of America’s most consequential strategic vulnerabilities, and it’s one our adversaries have been all too willing to exploit. 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 that must be met to ensure our long-term defense readiness.”
Stephen duMont, Chairman of REalloys, added: “The Department of War’s focus on expanding domestic processing capacity is precisely the mission REalloys has been focused on. 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.”
The implications of this memorandum are significant for the defense industry and the broader U.S. economy. With the 2027 deadline approaching, the need for domestic HREE processing is critical for national security. REalloys’ progress through the Defense Industrial Base Consortium’s qualification pathway positions it 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. This development could reduce U.S. dependence on Chinese rare earth materials, which currently dominate global supply, and strengthen supply chain resilience.
For more information, visit REalloys’ investor website at www.realloys.com and the company’s newsroom at https://tinyurl.com/aloynewsroom.
