REalloys Inc. (NASDAQ: ALOY), a U.S.-based mine-to-magnet rare earth company, has announced plans to construct the largest heavy rare earth metallization facility outside of China through a partnership with the Saskatchewan Research Council. The facility, which represents the first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing, is expected to begin initial operations in early to mid-2027.
The heavy rare earth metal facility equipment will be built in Saskatoon before being relocated to Ohio to serve U.S. defense industrial base customers and supply the Defense Logistics Agency strategic rare earth stockpiles. REalloys will own 100% of the facility, which will integrate with the company's existing metallization operations in Euclid, Ohio, currently the only heavy rare earth metallization capability operating in North America.
This development addresses a critical bottleneck in North American supply chains by providing secure metallization of Dysprosium and Terbium for high-performance defense magnets. The facility's timing aligns with the expiration of U.S. defense procurement waivers that currently permit sourcing from non-allied nations, with statutory restrictions under 10 U.S.C. §4872 and DFARS 252.225-7052 set to take full effect in 2027. These restrictions will prohibit sourcing from China, Russia, Iran, and North Korea for defense applications.
The project builds on a partnership first announced in December 2025 between REalloys and the Saskatchewan Research Council. Under this arrangement, REalloys will invest in expanded production capacity at SRC's Rare Earth Processing Facility in Saskatoon in exchange for 80% of the facility's output. The SRC facility, described as the first and largest commercial-scale rare earth processing facility in North America, will produce high-purity Neodymium-Praseodymium metal and Dysprosium and Terbium oxides for further processing at REalloys' new facility.
This integrated approach creates North America's first complete heavy rare earth value chain, linking Canadian resource security and midstream processing with downstream metallization and manufacturing in the United States. The collaboration reflects broader alignment between Canada and the United States under Title 50 and related defense production frameworks designed to secure critical materials within allied borders.
The heavy rare earth metal facility is expected to cost approximately $40 million and produce roughly 30 tonnes of dysprosium and 15 tonnes of terbium metal annually. REalloys recently completed a $50 million financing round, making the company fully funded to advance the project's buildout. The facility will feature AI-enabled process optimization and full compliance with Title 50 defense sourcing requirements.
Stephen duMont, Chairman of REalloys, emphasized the strategic importance of the project, stating that the Ohio facility will create metallization capability that bridges Canadian oxide production with U.S. magnet manufacturing. Mike Crabtree, President and CEO of the Saskatchewan Research Council, noted that the partnership creates the Western hemisphere's first end-to-end rare earth metal capability powered by collaboration rather than dependency.
This development represents a significant step toward reducing Western dependence on Chinese rare earth processing and metallization capabilities, particularly for defense applications. The facility's location and operational structure are designed to comply with increasingly stringent U.S. defense procurement standards while establishing a secure, allied supply chain for critical materials essential to national security and advanced manufacturing.
