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 emphasizing the urgency to secure domestic heavy rare earth elements (HREE) supply 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 intent to build HREE processing facilities within North America.
The Department of War memorandum underscores a comprehensive, whole-of-government approach to fortifying America's HREE supply chain, with renewed support through financial investment, strategic policy, and expanded public-private partnerships. It signals that heavy rare earth elements remain a national security priority. The Company believes this memorandum aligns with its intent to develop and secure a sovereign HREE supply with zero China nexus in accordance with the Department of War's published defense strategy. However, 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, and upstream domestic feedstock from the highest-grade rare earth deposits across allied nations.
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, 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; building a sovereign, zero-adversary-nexus supply chain is a fundamental national security imperative."
In a sector dominated by projects facing permitting, financing, and technology-scaling risk, REalloys is actively advancing through the Defense Industrial Base Consortium's rigorous qualification pathway. The Company aims 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. More information about REalloys can be found on their website at www.realloys.com. The latest news and updates relating to $ALOY are available in the company’s newsroom at https://tinyurl.com/aloynewsroom.
This press release contains forward-looking statements within the meaning of applicable securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially. Factors include the inability to complete or operate the metallization facility on expected timelines, changes in U.S. government policy, and market conditions. For a full discussion of risks, refer to REalloys' filings with the Securities and Exchange Commission.
