REalloys (ALOY) announced plans to build the largest heavy rare earth metallization facility outside of China and the first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing. The equipment for REalloys’ heavy rare earth metal facility will be built in Saskatoon in partnership with the Saskatchewan Research Council. Following commissioning and initial test runs, it is anticipated the HREMF equipment will be relocated to Ohio to better serve REalloys’ downstream U.S. defense industrial base customers and to supply U.S. Defense Logistics Agency strategic rare earth stockpiles. REalloys will own 100% of the HREMF. The platform will integrate with the company’s current metallization operations in Euclid, Ohio, which represent the only heavy rare earth metallization capability currently operating in North America and anchor REalloys’ industry-leading rare earth intellectual property portfolio.With initial operations currently targeted for early to mid 2027, and full commercial scale operations currently expected in mid-to-late 2027, the HREMF will represent the first and only commercial-scale heavy rare earth metallization platform with zero-Chinese nexus, coming online as U.S. defense procurement waivers permitting sourcing from non-allied nations expire and statutory restrictions take full effect. In a sector still defined by pilot projects and scale-up risk, this facility aims to resolve the industry’s core bottleneck: secure North American metallization of Dysprosium and Terbium for high-performance defense magnets. This builds on the partnership REalloys and SRC first announced in December 2025, which will see REalloys invest in expanded production capacity at SRC’s Rare Earth Processing Facility in Saskatoon, SK, in exchange for 80% of the facility’s output. Once in full operation, SRC’s REPF facility is anticipated to produce high-purity Neodymium-Praseodymium metal and Dy and Tb oxides, which will then be further processed and metallized at REalloys’ HREMF.
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