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, in partnership with the Saskatchewan Research Council (SRC). The facility, which is fully financed, will be the first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing, marking a critical step toward North American supply chain independence for heavy rare earth metals.
The heavy rare earth metal facility (HREMF) will initially be constructed in Saskatoon, Saskatchewan, with equipment built in collaboration with SRC. Following commissioning and test runs, the equipment is expected to be relocated to Euclid, Ohio, to integrate with REalloys' existing metallization operations. The Ohio facility will serve downstream U.S. defense industrial base customers and supply the U.S. Defense Logistics Agency's (DLA) strategic rare earth stockpiles. REalloys will own 100% of the HREMF.
Initial operations are targeted for early to mid-2027, with full commercial scale expected by mid-to-late 2027. The HREMF will produce approximately 30 tonnes of dysprosium and 15 tonnes of terbium metal annually, addressing the critical bottleneck of secure North American metallization for high-performance defense magnets. This comes as U.S. defense procurement waivers for sourcing from non-allied nations expire and statutory restrictions under 10 U.S.C. §4872 and DFARS 252.225-7052 take full effect.
This initiative builds on a partnership announced in December 2025, where REalloys invested in expanded production capacity at SRC's Rare Earth Processing Facility (REPF) in Saskatoon in exchange for 80% of its output. The REPF, the first commercial-scale rare earth processing facility in North America, will supply high-purity neodymium-praseodymium metal and dysprosium and terbium oxides to REalloys' HREMF for further processing. The integration creates North America's first end-to-end heavy rare earth value chain, linking Canadian resource processing with U.S. metallization and manufacturing.
Stephen duMont, Chairman of REalloys, stated that the facility represents a defining moment for North American industrial strategy, bridging Canadian oxide production with U.S. magnet manufacturing. Mike Crabtree, President and CEO of SRC, emphasized that the partnership demonstrates coordinated innovation between public and private industry and strategic alignment between Canada and the United States.
The HREMF is expected to cost approximately $40 million, with REalloys fully funded following a recent $50 million financing. The facility will feature AI-enabled process optimization and full compliance with Title 50 defense sourcing requirements, ensuring a zero-China nexus supply chain. This project positions REalloys to meet the growing demand for heavy rare earth metals in defense and advanced manufacturing, reducing reliance on Chinese supply chains and strengthening national security.
