REalloys Announces Fully Financed Heavy Rare Earth Metallization Facility to Meet 2027 U.S. Defense Procurement Standards

REalloys Inc. (NASDAQ: ALOY), a U.S.-based mine-to-magnet rare earth company, announced plans to build the largest heavy rare earth metallization facility outside of China and the first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing. The equipment for REalloys' heavy rare earth metal facility will be built in Saskatoon in partnership with the Saskatchewan Research Council, with initial operations targeted for early to mid 2027 and full commercial scale operations expected in mid-to-late 2027.

The facility represents the first and only commercial-scale heavy rare earth metallization platform with zero-Chinese nexus, coming online as U.S. defense procurement waivers permitting sourcing from non-allied nations expire and statutory restrictions take full effect. With new procurement restrictions from non-allied nations under 10 U.S.C. §4872 and DFARS 252.225-7052 set to take effect in 2027, the REalloys-SRC partnership delivers a compliant, zero-China nexus supply chain solution built on established infrastructure, advanced automation, and proven operating expertise. This initiative reflects a broader alignment between Canada and the United States under Title 50 and related defense production frameworks to secure critical materials within allied borders.

The project marks a pivotal step in creating North America's first integrated heavy rare earth value chain, linking resource security and midstream processing in Canada with downstream metallization and manufacturing in the United States. Following commissioning and initial test runs, the HREMF equipment will be relocated to Ohio to better serve REalloys' downstream U.S. defense industrial base customers and to supply U.S. Defense Logistics Agency strategic rare earth stockpiles. REalloys will own 100% of the facility, which will integrate with the company's current metallization operations in Euclid, Ohio, representing the only heavy rare earth metallization capability currently operating in North America.

This builds on the partnership REalloys and SRC first announced in December 2025, which will see REalloys invest in expanded production capacity at SRC's Rare Earth Processing Facility in Saskatoon in exchange for 80% of the facility's output. Once in full operation, SRC's REPF facility is anticipated to produce high-purity Neodymium-Praseodymium metal and Dysprosium and Terbium oxides, which will then be further processed and metallized at REalloys' HREMF. The company believes this alignment will assist in establishing a fully allied source of Dysprosium and Terbium metals for defense and advanced manufacturing supply chains servicing strategic and protected markets.

The HREMF is currently expected to cost approximately $40 million and produce roughly 30 tonnes of dysprosium and 15 tonnes of terbium metal annually. With the completion of its recent $50 million financing, REalloys is currently fully funded to advance the buildout of the project. In a sector still defined by pilot projects and scale-up risk, this facility aims to resolve the industry's core bottleneck: secure North American metallization of Dysprosium and Terbium for high-performance defense magnets.

Stephen duMont, Chairman of REalloys, stated that the establishment of heavy rare earth metal production on U.S. soil is a defining moment for North American industrial strategy, creating the metallization capability that bridges Canadian oxide production with U.S. magnet manufacturing. Mike Crabtree, President and CEO of the Saskatchewan Research Council, emphasized that the partnership creates the Western hemisphere's first end-to-end rare earth metal capability, powered by collaboration and stability rather than dependency. The company believes this integrated supply chain creates an unparalleled foundation that brings proven scale, capability, technical maturity, and operational readiness to an industry that is extremely vulnerable from a national security perspective.