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 of China and the first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing. The equipment for the heavy rare earth metal facility (HREMF) will be built in Saskatoon in partnership with the Saskatchewan Research Council (SRC) and then relocated to Ohio to serve U.S. defense industrial base customers and supply U.S. Defense Logistics Agency strategic stockpiles.
REalloys will own 100% of the HREMF, which will integrate with its current 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 by mid-to-late 2027. The facility will be the first and only commercial-scale heavy rare earth metallization platform with zero-Chinese nexus, coming online as U.S. defense procurement waivers expire and statutory restrictions take full effect. This resolves the industry's core bottleneck: secure North American metallization of Dysprosium (Dy) and Terbium (Tb) for high-performance defense magnets.
This builds on the partnership REalloys and SRC first announced in December 2025, where REalloys invests in expanded production capacity at SRC's Rare Earth Processing Facility (REPF) in Saskatoon in exchange for 80% of the facility's output. Once fully operational, the REPF is anticipated to produce high-purity Neodymium-Praseodymium (NdPr) metal and Dy and Tb oxides, which will be further processed at REalloys' HREMF. The alignment aims to establish a fully allied source of Dy and Tb metals for defense and advanced manufacturing supply chains.
The project marks a pivotal step in creating North America's first integrated heavy rare earth value chain, linking resource security and midstream processing in Canada with downstream metallization and manufacturing in the United States. SRC's REPF, the first and largest commercial-scale rare earth processing facility in North America, provides the proven technical base to ensure the Ohio facility moves directly into commercial production. This initiative reflects broader alignment between Canada and the United States under Title 50 and related defense production frameworks to secure critical materials within allied borders.
With new procurement restrictions from non-allied nations under 10 U.S.C. §4872 and DFARS 252.225-7052 set to take effect in 2027, the REalloys–SRC partnership delivers a compliant, zero-China nexus supply chain solution built on established infrastructure, advanced automation, and proven operating expertise. 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 project.
“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. This is not a pilot plant; this will be full scale commercial capacity, built with zero Chinese nexus, AI-enabled process optimization, and full compliance with Title 50 defense sourcing requirements.”
“The REalloys–SRC partnership demonstrates what coordinated innovation between public and private industry—and true strategic alignment between Canada and the United States—can achieve,” said Mike Crabtree, President and CEO of the Saskatchewan Research Council. “Together our teams have engineered every step of this value chain from separation to metal production to operate within allied borders. This partnership creates the Western hemisphere’s first end-to-end rare earth metal capability.”
