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, located in Ohio, with initial operations expected in the first half of 2027. The facility, built in partnership with the Saskatchewan Research Council (SRC), will be fully financed and designed to comply with 2027 U.S. defense procurement standards that ban sourcing from non-allied nations, including China.
The heavy rare earth metal facility (HREMF) will be constructed with equipment built in Saskatoon, Canada, in collaboration with SRC, and then relocated to Ohio to serve downstream U.S. defense industrial base customers and supply the U.S. Defense Logistics Agency (DLA) strategic rare earth stockpiles. REalloys will own 100% of the HREMF, which will integrate with its existing metallization operations in Euclid, Ohio, currently the only heavy rare earth metallization capability operating in North America.
The facility aims to produce approximately 30 tonnes of dysprosium and 15 tonnes of terbium metal annually, critical for high-performance defense magnets. This project resolves a core bottleneck in North America: secure metallization of heavy rare earths like Dysprosium (Dy) and Terbium (Tb) without reliance on Chinese supply chains. With U.S. defense procurement waivers expiring and statutory restrictions taking full effect in 2027, the HREMF will be the first and only commercial-scale zero-China nexus heavy rare earth metallization platform.
The partnership builds on a December 2025 agreement 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 will produce high-purity Neodymium-Praseodymium (NdPr) metal and Dy and Tb oxides, which will be further processed at REalloys' HREMF. This creates an integrated heavy rare earth value chain linking Canadian resource security and midstream processing with U.S. downstream metallization and manufacturing.
Stephen duMont, Chairman of REalloys, stated: "The establishment of heavy rare earth metal production on U.S. soil is a defining moment for North American industrial strategy. This is not a pilot plant; this will be full scale commercial capacity, built with zero Chinese nexus, AI-enabled process optimization, and full compliance with Title 50 defense sourcing requirements." Mike Crabtree, President and CEO of SRC, added: "This partnership with REalloys creates the Western hemisphere's first end-to-end rare earth metal capability, powered by collaboration and stability, not dependency."
The HREMF is expected to cost approximately $40 million, and REalloys is fully funded following its recent $50 million financing. The project aligns with Canada-U.S. defense production frameworks under Title 50 and related statutes to secure critical materials within allied borders. For more information, visit REalloys.com and SRC's website.
