REalloys Inc. (NASDAQ: ALOY) has announced a strategic alliance with U.S. Critical Materials Corp. (USCM) to secure up to 10% offtake from the Sheep Creek rare earth project in Ravalli County, Montana, the highest-grade rare earth deposit in the United States. The non-binding Memorandum of Understanding (MOU) establishes a framework for REalloys to feed domestically sourced heavy rare earth material into its midstream and downstream operations, supporting U.S. strategic defense stockpiles.
Sheep Creek averages approximately 9% total rare earth oxides (TREO), with 89,932 ppm across a 7,277.5-acre land package. The deposit contains confirmed dysprosium and terbium, two of the most strategically sensitive heavy rare earth elements essential for high-performance permanent magnets used in F-35 fighter aircraft, missile guidance systems, radar platforms, and other advanced defense systems. At 10% offtake, REalloys gains a significant domestic feedstock source to complement its diversified allied-nation supply network, as procurement restrictions on Chinese-sourced rare earths take full effect in 2027.
The MOU also includes a framework for potential strategic equity investment and equity exchange, joint pursuit of government financing, and coordinated government relations. This positions REalloys to present a fully domestic heavy rare earth supply chain with no Chinese involvement at any stage. "While others rely on a single source for their rare earth feedstock, REalloys is executing a fundamentally different strategy – partnering with the highest-grade developers across allied nations to build a diversified supply network," said Lipi Sternheim, CEO of REalloys. Harvey Kaye, Executive Chairman of USCM, added, "Sheep Creek is the highest-grade rare earth deposit in the country, it is fully domestic, and it is now connected to the only midstream and metallization platform in the Western Hemisphere capable of converting that resource into defense-ready metals."
Under the MOU, the parties will advance metallurgical test work, optimize heavy rare earth processing flowsheets, and negotiate a definitive long-term offtake agreement within one year. REalloys' Ohio facility processes heavy rare earth metals and alloys for the Department of Defense, Department of Energy, and NASA. For more information, visit REalloys.com and U.S. Critical Materials.
Forward-looking statements in this release involve risks including the failure to execute definitive agreements, geological and permitting risks at Sheep Creek, and delays in facility construction. Neither party undertakes to update these statements. For additional risks, refer to REalloys' SEC filings at SEC.gov.
