REalloys Inc. (NASDAQ: ALOY), a U.S. mine-to-magnet rare earth company, announced Tuesday the signing of a non-binding Memorandum of Understanding with U.S. Critical Materials Corp. to secure up to 10% offtake from the Sheep Creek rare earth project in Ravalli County, Montana. The agreement aims to feed domestically sourced heavy rare earth material into REalloys' midstream and downstream operations for U.S. strategic defense stockpiles.
Sheep Creek is reported as the highest-grade rare earth deposit in the United States, averaging approximately 9% total rare earth oxides (TREO) across a 7,277.5-acre land package with over 60 identified carbonatite formations. The deposit contains confirmed dysprosium and terbium, two heavy rare earth elements critical for high-performance permanent magnets used in F-35 fighter aircraft, missile guidance systems, and radar platforms. The offtake agreement would provide REalloys with a domestic feedstock source to complement its diversified global supply network, as procurement restrictions on Chinese-sourced rare earths take full effect in 2027.
The MOU also establishes a framework for potential strategic equity investment and equity exchange, joint pursuit of government financing, and coordinated government relations. This unified approach aims to present Congress and the executive branch with a fully domestic heavy rare earth supply chain with no Chinese involvement at any stage.
“While others rely on a single source for their rare earth feedstock, REalloys is executing a fundamentally different strategy – partnering with the highest-grade developers across allied nations to build a diversified supply network specifically designed to counteract Chinese dominance,” said Lipi Sternheim, Chief Executive Officer of REalloys, in a statement.
Harvey Kaye, Executive Chairman of U.S. Critical Materials Corp., emphasized the strategic importance of the deposit: “Sheep Creek is America’s rare earth answer to Chinese supply dominance. It is the highest-grade rare earth deposit in the country, it is fully domestic, and it is now connected to the only midstream and metallization platform in the Western Hemisphere capable of converting that resource into defense-ready metals.”
Under the MOU, the parties will advance metallurgical test work, optimize HREE processing flowsheets, and negotiate a definitive long-term offtake agreement, with reasonable efforts to execute within one year. The collaboration aligns with U.S. defense procurement requirements and supports the goal of reducing dependence on foreign adversaries for critical minerals.
REalloys is building a fully integrated North American mine-to-magnet supply chain, including its Hoidas Lake rare-earth asset in Saskatchewan and a diversified network of allied feedstock and recycling partners. The company's Ohio facility produces advanced heavy rare earth metals, alloys, and magnet components for defense, clean-energy, and high-performance industrial applications. For more information, visit www.realloys.com and www.uscriticalmaterials.com.
