REalloys Inc. (NASDAQ: ALOY), a U.S.-based mine-to-magnet rare earth company, announced today that it has signed a non-binding Memorandum of Understanding (MOU) with U.S. Critical Materials Corp. (USCM), owner of the Sheep Creek rare earth project in Ravalli County, Montana. The MOU establishes a framework for REalloys to secure up to 10% offtake from Sheep Creek, which is reported to be the highest-grade rare earth deposit in the United States. This feedstock will feed into REalloys' advanced midstream and downstream operations to supply U.S. strategic defense stockpiles.
Sheep Creek averages approximately 9% total rare earth oxides (TREO) across a 7,277.5-acre land package with over 60 identified carbonatite formations. The deposit contains confirmed dysprosium and terbium, two of the most strategically sensitive heavy rare earth elements used in high-performance permanent magnets for F-35 fighter aircraft, missile guidance systems, radar platforms, and other advanced U.S. defense platforms. At 10% offtake, REalloys gains a potentially material domestic feedstock source to complement its diversified global allied-nation supply network, adding a critical domestic anchor as procurement restrictions on Chinese-sourced rare earths take full effect in 2027.
The MOU also establishes a framework for potential strategic equity investment and equity exchange, joint pursuit of government financing, and coordinated government relations. This presents Congress and the executive branch with a unified, fully domestic heavy rare earth supply chain narrative built on zero 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 specifically designed to counteract Chinese dominance," said Lipi Sternheim, Chief Executive Officer of REalloys. "Working closely with our partners in government and across the Defense Industrial Base, we are identifying the strategic assets that plug into our advanced midstream and downstream ecosystem to fortify supply chain security for protected and strategic markets, with zero Chinese involvement at any stage."
Harvey Kaye, Executive Chairman of U.S. Critical Materials Corp., noted: "Sheep Creek is America’s rare earth answer to Chinese supply dominance. The United States cannot claim critical mineral sovereignty while depending on foreign adversaries for the heavy rare earths that guide our missiles, power our fighter jets, and drive every advanced defense platform in our arsenal. Sheep Creek changes that equation. It 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 HREE processing flowsheets, and negotiate a definitive long-term offtake agreement, with reasonable efforts to execute within one year of the MOU date. The announcement underscores the strategic importance of securing domestic rare earth supply chains, particularly for heavy rare earths critical to national defense. As U.S. defense procurement restrictions on Chinese-sourced materials tighten, partnerships like this one aim to establish a secure, fully domestic supply chain from mine to magnet.
REalloys' downstream manufacturing operations in Euclid, Ohio, produce advanced heavy rare earth metals, alloys, and magnet components for defense, clean-energy, and high-performance industrial applications. The company's facility serves federal logistics and procurement agencies supporting the Department of Defense, Department of Energy, and NASA, in addition to the broader Defense Industrial Base.
For more information, visit REalloys.com or USCriticalMaterials.com.
