REalloys Inc. (NASDAQ: ALOY) announced that its leadership has received a formal memorandum from the Department of War, following recent company engagements to enable heavy rare earth element (HREE) processing. The memorandum recognizes the Department's whole-of-government approach to fortifying America's HREE supply chain and renews support through financial investment, strategic policy, and expanded public-private partnerships. It 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 Company believes that this memorandum aligns with its intent to develop a sovereign HREE supply with zero China nexus, in accordance with the Department of War's published defense strategy. The memorandum is not a technical endorsement of REalloys or its commercial partners, but it signals the urgency to secure domestic HREE supply ahead of the January 2027 prohibition on Chinese-origin rare earth materials under 10 U.S.C. §4872 and DFARS 252.225-7052.
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. 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 that eliminates hazardous chemicals, and upstream domestic feedstock from allied nations.
Joe Kasper, Head of Government Relations and Chair of REalloys' Advisory Board, stated, "We believe 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." 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."
REalloys is actively advancing through the Defense Industrial Base Consortium's 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. The Company's Ohio facility serves federal logistics and procurement agencies supporting the Department of Defense, the Department of Energy, and NASA, in addition to the broader Defense Industrial Base.
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