REalloys Inc. (NASDAQ: ALOY), a U.S.-based midstream rare earth processing innovator, announced that its leadership has received a formal memorandum from the Department of War emphasizing the urgency to secure domestic heavy rare earth elements (HREEs) ahead of the January 2027 prohibition on Chinese-origin rare earth materials. The memorandum 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 memorandum recognizes the Department's comprehensive approach to fortifying America's HREE supply chain through financial investment, strategic policy, and expanded public-private partnerships. It signals that HREEs remain a national security priority. 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, designed to produce defense-grade dysprosium and terbium metal with a zero-adversary-nexus supply chain compliant with 10 U.S.C. §4872 and DFARS 252.225-7052.
Joe Kasper, Head of Government Relations and Chair of REalloys' Advisory Board, stated, "We believe that 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' 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 high-grade rare earth deposits across allied nations. The company 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.
Stephen duMont, Chairman of REalloys, noted, "The Department of War's focus on expanding domestic processing capacity is precisely the mission REalloys has been focused on. The solution we're building... is purpose-engineered to lead the industry in answering the call to resolve defense-grade sourcing and supply challenges." The memorandum is not a technical endorsement of REalloys or its commercial partners, but it underscores the strategic importance of domestic HREE processing for national security.
