The US Army selected REalloys to build the first commercial critical mineral processing facility on a military installation, targeting 2028 operations.
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REalloys to build rare earth plant on US Army base by 2028
REalloys Inc. will build the first commercial rare earth processing complex on a US military base, the Tooele Army Depot in Utah, with initial operations expected by 2028.
"This partnership places commercial critical mineral processing directly within America's national security infrastructure for the first time," Lipi Sternheim, chief executive officer of REalloys, said.
The facility will refine dysprosium and terbium, two heavy rare earth elements essential for high-temperature permanent magnets used in defense systems. REalloys committed about $20.6 million to upgrades at the Saskatchewan Research Council's rare earth facility, securing exclusive rights to 80% of its expanded output. The company also completed a $100 million private placement to strengthen its balance sheet.
The timeline aligns with the Jan. 1, 2027, federal procurement ban on Chinese rare earth materials in US defense systems. Lockheed Martin's F-35 carries more than 900 pounds of rare earth materials, including about 50 pounds of samarium-cobalt magnets — all subject to the same sourcing deadline.
The Tooele complex will operate under an Enhanced Use Lease structure, keeping ownership, financing and operations in private hands while using federal property. The facility is expected to support the US Army, the Defense Logistics Agency, the Department of Energy and NASA.
REalloys has assembled feedstock agreements across multiple sources. The company secured a long-term offtake agreement for 15% of Phase 1 production from Critical Metals' Tanbreez project in Greenland, a strategic alliance tied to the Sheep Creek rare earth deposit in Montana, and a proposed supply framework with Ramaco Resources for coal-hosted rare earth material from the Brook Mine in Wyoming.
A Supply Chain Taking Shape
The Army award moves REalloys upstream from its existing metallization business. Earlier this year, the Defense Logistics Agency backed the company's technology through a contract to expand domestic samarium and gadolinium metal production. The Tooele project adds commercial heavy rare earth processing to a platform that already includes metals and alloys.
The company also signed a non-binding letter of intent with JS Link Inc., a South Korea-based permanent magnet manufacturer, to evaluate a strategic partnership for an integrated North American rare earth magnet supply chain spanning feedstock, separation, metallization and magnet manufacturing.
RTX Corp. and Northrop Grumman Corp. carry similar exposure through their defense programs. RTX's Patriot missile system and radar lines run on high-purity dysprosium and terbium. Northrop Grumman's B-21 Raider bomber and Deep Space Advanced Radar Capability program face the same 2027 sourcing requirements.
This article is for informational purposes only and does not constitute investment advice.
[1] What's driving US critical minerals stocks higher on Tuesday?[2] The U.S. Army Just Took a Historic Step to Break China's Rare Earth Dominance[3] REalloys and JS Link Sign Non-Binding Strategic Letter of Intent to Develop a Fully Integrated North American Rare Earth Magnet Platform[4] The U.S. Is Increasing Efforts to Rebuild Its Rare Earth Supply Chain
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