REalloys Inc. (NASDAQ: ALOY) has received a formal memorandum from the U.S. Department of War, underscoring the urgency to secure domestic heavy rare earth element (HREE) supply chains 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 focus on building HREE processing facilities within North America.
The memorandum, delivered following recent engagements between REalloys and the Department, is not a technical endorsement of the company or its commercial partners. However, it recognizes a comprehensive government approach to fortifying America's HREE supply chain through financial investment, strategic policy, and expanded public-private partnerships. REalloys believes this aligns with its intent to develop a sovereign HREE supply with zero China nexus, in accordance with the Department's published defense strategy.
REalloys operates the only heavy rare earth metallization platform in North America and is scaling it by building the largest heavy rare earth metallization facility outside of China. The 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, and upstream domestic feedstock from allied nations.
Joe Kasper, Head of Government Relations and Chair of REalloys' Advisory Board, said, "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. This memorandum affirms the path we're on." General Jack Keane (Ret.), Board Director of REalloys, added, "For decades, critical material dependencies have represented one of America's most consequential strategic vulnerabilities. Building a sovereign, zero-adversary-nexus supply chain is a fundamental national security imperative."
REalloys is actively 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. The company's Ohio facility serves federal logistics and procurement agencies supporting the Department of Defense, the Department of Energy, and NASA, in addition to the broader Defense Industrial Base.
For more information about REalloys and its initiatives, visit www.realloys.com.
