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, expected to cost approximately $40 million, will be fully financed following the company's recent $50 million financing. Initial operations are targeted for early to mid 2027, with full commercial scale expected by mid-to-late 2027.
The heavy rare earth metal facility (HREMF) will be built in Saskatoon in partnership with SRC. After commissioning and initial test runs, the equipment will be relocated to Ohio to serve REalloys' downstream U.S. defense industrial base customers and supply U.S. Defense Logistics Agency (DLA) 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.
This facility represents 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 in 2027. The HREMF aims to resolve the industry's core bottleneck: secure North American metallization of Dysprosium (Dy) and Terbium (Tb) for high-performance defense magnets. The project is expected to produce roughly 30 tonnes of dysprosium and 15 tonnes of terbium metal annually.
The partnership builds on a December 2025 agreement where REalloys invested in expanded production capacity at SRC's Rare Earth Processing Facility (REPF) in Saskatoon in exchange for 80% of the facility's output. SRC's REPF, the first and largest commercial-scale rare earth processing facility in North America, will produce high-purity Neodymium-Praseodymium (NdPr) metal and Dy and Tb oxides for further processing at REalloys' HREMF.
This initiative aligns with broader efforts 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.
Stephen duMont, Chairman of REalloys, said the Ohio facility creates the metallization capability bridging Canadian oxide production with U.S. magnet manufacturing, a critical link that has never existed at scale in the West. Mike Crabtree, President and CEO of SRC, said the partnership creates the Western hemisphere's first end-to-end rare earth metal capability, powered by collaboration and stability, not dependency.
The HREMF is currently fully funded to advance the buildout of the project. More information is available at www.realloys.com and www.src.sk.ca.
