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, in partnership with the Saskatchewan Research Council (SRC). The facility, which will be fully financed, aims to comply with 2027 U.S. defense procurement bans on Chinese sourcing, marking a pivotal step in establishing a secure North American supply chain for critical defense materials.
The heavy rare earth metal facility (HREMF) will be built in Saskatoon, Canada, with equipment supplied by SRC. Following commissioning and initial test runs, the equipment will be relocated to Ohio to serve REalloys’ 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—the only heavy rare earth metallization capability currently operating in North America.
Initial operations are targeted for early to mid-2027, with full commercial scale expected in mid-to-late 2027. The HREMF will be the first and only commercial-scale heavy rare earth metallization platform with zero-Chinese nexus, addressing the industry’s core bottleneck: secure North American metallization of dysprosium (Dy) and terbium (Tb) for high-performance defense magnets. This comes as U.S. defense procurement waivers for non-allied nations expire, enforcing statutory restrictions under 10 U.S.C. §4872 and DFARS 252.225-7052.
The project builds on a partnership announced in December 2025, where REalloys will invest in expanded production capacity at SRC’s Rare Earth Processing Facility (REPF) in Saskatoon in exchange for 80% of its output. SRC’s REPF, the first commercial-scale rare earth processing facility in North America, will produce high-purity neodymium-praseodymium (NdPr) metal and Dy and Tb oxides, which will be further processed at REalloys’ HREMF. This alignment establishes a fully allied source of Dy and Tb metals for defense and advanced manufacturing supply chains.
The HREMF is expected to cost approximately $40 million and produce roughly 30 tonnes of dysprosium and 15 tonnes of terbium metal annually. With the completion of its recent $50 million financing, REalloys is fully funded to advance the buildout. The project links resource security and midstream processing in Canada with downstream metallization and manufacturing in the United States, creating North America’s first integrated heavy rare earth value chain.
“The establishment of heavy rare earth metal production on U.S. soil is a defining moment for North American industrial strategy,” said Stephen duMont, Chairman of REalloys. “The Ohio facility will create the metallization capability that bridges Canadian oxide production with U.S. magnet manufacturing—a critical link that’s never existed at scale in the West.” 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 initiative reflects a broader alignment between Canada and the United States under Title 50 and related defense production frameworks to secure critical materials within allied borders. For more information, visit SRC's website and REalloys' website.
