The Department of War has delivered a formal memorandum to REalloys (NASDAQ: ALOY) underscoring the urgency to secure domestic heavy rare earth elements (HREE) 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 memorandum recognizes the Department’s comprehensive, whole-of-government approach to fortifying America’s HREE supply chain and a renewal of support through financial investment, strategic policy, and expanded public-private partnerships. 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, 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. REalloys is actively advancing through the Defense Industrial Base Consortium’s rigorous qualification pathway 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.
“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,” said Joe Kasper, Head of Government Relations and Chair of REalloys’ Advisory Board. 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.”
Stephen duMont, Chairman of REalloys, stated, “The solution we’re building, from commercial-scale processing to innovative metallization and downstream manufacturing operations, is purpose-engineered to lead the industry in answering the call to resolve defense-grade sourcing and supply challenges on the horizon.” The memorandum is not a technical endorsement of REalloys or its commercial partners. More information about REalloys is available at www.realloys.com, and updates on $ALOY can be found at the company’s newsroom.
