REalloys Inc. (NASDAQ: ALOY) 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) ahead of the January 2027 prohibition on Chinese-origin rare earth materials. The memorandum designates Dysprosium (Dy) and Terbium (Tb) as critical, high-value HREEs, aligning with REalloys' strategic intent to build HREE processing facilities within North America.
The Department of War's memorandum recognizes a comprehensive, whole-of-government approach to fortifying America's HREE supply chain through financial investment, strategic policy, and expanded public-private partnerships. It signals that HREEs remain a national security priority. 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, designed to produce defense-grade dysprosium and terbium metal with a zero-adversary-nexus supply chain compliant 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. REalloys is advancing through the Defense Industrial Base Consortium's qualification pathway to deliver compliant, defense-grade heavy rare earth metals to the Department of Defense and the Defense Logistics Agency 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." General Jack Keane (Ret.), Board Director, added, "For decades, critical material dependencies have represented one of America's most consequential strategic vulnerabilities. The Department of War is correctly prioritizing the development of domestic HREE processing capacity."
Stephen duMont, Chairman of REalloys, noted, "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."
REalloys is advancing a fully integrated North American mine-to-magnet supply chain encompassing upstream resource development, midstream processing, and downstream manufacturing. The company's Ohio facility serves federal logistics and procurement agencies supporting the Department of Defense, the Department of Energy, and NASA.
This announcement underscores the strategic importance of domestic HREE processing for national security. For further updates on $ALOY, visit the company's newsroom at https://tinyurl.com/aloynewsroom.
