REalloys Inc. (NASDAQ: ALOY), a U.S.-based midstream rare earth processing innovator, announced that its leadership has received a formal memorandum from the Department of War underscoring the urgency to secure domestic heavy rare earth elements (HREE) in advance 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 Department of War memorandum recognizes a comprehensive, whole-of-government approach to fortifying America’s HREE supply chain and renews support through financial investment, strategic policy, and expanded public-private partnerships. The Company believes this memorandum aligns with its intent to develop a sovereign HREE supply with zero China nexus, in accordance with the Department of War’s published defense strategy. However, the Company clarified that the memorandum is not a technical endorsement of REalloys or its commercial partners.
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. This facility is purpose-engineered to produce defense-grade dysprosium and terbium metal at commercial scale with a zero-adversary-nexus supply chain designed to comply 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 that eliminates a hazardous chemical, and upstream domestic feedstock from the highest-grade rare earth deposits across allied nations.
In a sector dominated by projects facing permitting, financing, and technology-scaling risk, REalloys is 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.
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 announcement are significant for national security and the defense industrial base. The 2027 deadline creates a critical timeline for establishing domestic HREE processing capabilities, reducing reliance on Chinese supply. REalloys’ advancements could help ensure that the U.S. military and key industries have access to essential materials for permanent magnets used in advanced weapons systems, electric vehicles, and renewable energy technologies. For investors and industry stakeholders, the memorandum signals strong government support for domestic critical mineral projects, potentially accelerating funding and partnerships.
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