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 China, with first operations expected in early to mid 2027. The facility will be purpose-built to supply the U.S. Defense Industrial Base and Defense Logistics Agency national strategic rare earth stockpiles, coming online as U.S. defense procurement waivers permitting sourcing from non-allied nations expire.
The heavy rare earth metal facility represents the first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing. With equipment to be built in Saskatoon in partnership with the Saskatchewan Research Council and subsequently relocated to Ohio, the facility will produce approximately 30 tonnes of dysprosium and 15 tonnes of terbium metal annually. These materials are essential for high-performance defense magnets used in military applications.
This initiative addresses a critical national security vulnerability by establishing a fully allied source of heavy rare earth metals within North America. The project creates 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. The Saskatchewan Research Council's Rare Earth Processing Facility, detailed at https://www.src.sk.ca, provides the proven technical and operational base for this project, ensuring the Ohio facility moves directly into commercial production.
The timing coincides 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. These regulations will prohibit U.S. defense sourcing from China, Russia, Iran, and North Korea, creating an urgent need for compliant supply chains. The REalloys-SRC partnership delivers a zero-China nexus solution built on established infrastructure, advanced automation, and proven operating expertise.
Stephen duMont, Chairman of REalloys, emphasized that this facility represents full-scale commercial capacity rather than a pilot plant, built with AI-enabled process optimization and full compliance with Title 50 defense sourcing requirements. The $40 million project is fully funded following REalloys' recent $50 million financing, with the company owning 100% of the facility. This integrated supply chain creates an unparalleled foundation that brings proven scale, capability, technical maturity, and operational readiness to an industry that has been dominated by projects facing permitting, financing, and technology risk.
The partnership builds on an agreement first announced in December 2025, where REalloys will invest in expanded production capacity at SRC's facility in exchange for 80% of its output. Once in full operation, SRC's 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' Ohio facility. This alignment reflects broader coordination between Canada and the United States under Title 50 and related defense production frameworks to secure critical materials within allied borders.
Mike Crabtree, President and CEO of the Saskatchewan Research Council, noted that this partnership creates the Western hemisphere's first end-to-end rare earth metal capability, powered by collaboration and stability rather than dependency. The facility will integrate with REalloys' current metallization operations in Euclid, Ohio, which represent the only heavy rare earth metallization capability currently operating in North America. For additional information about REalloys' corporate developments, investors can monitor the company's newsroom at https://tinyurl.com/aloynewsroom.
