The Defense Logistics Agency has awarded a contract to REalloys Inc. to scale next-generation metallothermal processes for samarium and gadolinium metals, marking a significant step toward establishing domestic production capabilities for these critical defense materials. With the United States currently 100% dependent on foreign sources for these metals, the contract represents a strategic breakthrough for national security by addressing a long-standing vulnerability in defense supply chains.
REalloys, through its subsidiary PMT Critical Metals, acquired the rare-earth assets of Terves LLC and Powdermet Inc. in March 2025, gaining proprietary technology that the DLA contract now supports. The company is advancing a 300 ton per year modular production facility designed to rapidly deploy and scale domestic production capacity for these essential metals. This initiative directly responds to the Department of War's identification of rare earth supply security as a strategic vulnerability.
The contract advances REalloys' direct metallothermal processing platform, which includes revolutionary zero-waste rare earth metallization technology. Unlike conventional rare earth processing that relies on large, capital-intensive solvent extraction plants, REalloys is developing a modular, semi-continuous processing architecture that enables direct reduction of Samarium-Europium-Gadolinium feedstocks into high-purity metals. The company has filed a provisional patent covering this direct reduction process and zero-waste metallization technology, underscoring the proprietary nature of the platform.
Samarium and gadolinium metals serve as essential inputs for numerous defense and dual-use technologies. Samarium-cobalt permanent magnets are the only magnetic material capable of withstanding the extreme heat of fighter jet engines and supersonic friction of precision-guided munitions. Gadolinium is essential for both stealth radar technology and safety control rods in nuclear reactors. These metals also support precision guidance systems, aerospace and radar applications, advanced optics, and other technologies requiring materials that can operate in extreme thermal and radiation environments.
The DLA contract will allow REalloys to scale its 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. The company aims to reduce production costs by up to 50% through its zero-waste approach that eliminates the need for large solvent extraction facilities and enables direct recycling of all byproducts.
As the nation's combat logistics support agency, 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. The contract strengthens REalloys' proprietary technology and supports expansion of the company's domestic production platform at a critical time for U.S. defense priorities.
By establishing a sovereign source for these high-heat and neutron-absorbing metals, REalloys is securing foundational components required for the next generation of American aerospace, defense, and energy independence. The company's approach aims to significantly reduce capital requirements, shorten deployment timelines, and enable distributed domestic production aligned with U.S. defense and industrial policy priorities. This development represents a strategic shift toward securing essential defense materials that have no substitutes in extreme environments, effectively closing a critical gap in national security supply chains.
