REalloys Inc. (NASDAQ: ALOY) announced plans to build the largest heavy rare earth metallization facility outside of China, in partnership with the Saskatchewan Research Council (SRC). The facility, fully financed through the company's recent $50 million financing, is expected to begin operations in the first half of 2027 and will be the first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing.
Equipment for the heavy rare earth metal facility (HREMF) will be built in Saskatoon in partnership with SRC, then relocated to Ohio to serve REalloys' downstream U.S. defense industrial base customers and supply U.S. Defense Logistics Agency strategic rare earth 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.
The facility is expected to produce approximately 30 tonnes of dysprosium and 15 tonnes of terbium metal annually, critical for high-performance defense magnets. With a zero-China nexus, it will comply with Title 50 defense sourcing requirements under 10 U.S.C. §4872 and DFARS 252.225-7052, which restrict procurement from non-allied nations including China, Russia, Iran, and North Korea.
This project builds on a partnership first announced in December 2025, where REalloys invested in expanded production capacity at SRC's Rare Earth Processing Facility (REPF) in Saskatoon in exchange for 80% of its output. SRC's REPF, the first commercial-scale rare earth processing facility in North America, will supply high-purity neodymium-praseodymium metal and dysprosium and terbium oxides for further processing at the HREMF.
Stephen duMont, Chairman of REalloys, stated: "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."
Mike Crabtree, President and CEO of SRC, added: "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. Together our teams have engineered every step of this value chain, from separation to metal production, to operate within allied borders and to world-class standards."
The HREMF represents 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. The project is fully funded and expected to cost approximately $40 million.
