REalloys Receives Department of War Memorandum Urging Domestic Heavy Rare Earth Supply Security Ahead of 2027 Ban on Chinese Sources
REalloys has received a Department of War memorandum emphasizing the urgency to secure domestic heavy rare earth elements, particularly dysprosium and terbium, ahead of the 2027 prohibition on Chinese-origin rare earths, signaling strong government support for its processing initiatives.
REalloys Inc. (NASDAQ: ALOY) announced that its leadership has received a formal memorandum from the Department of War, highlighting the critical need to secure a domestic supply of heavy rare earth elements (HREEs) before the January 2027 prohibition on Chinese-origin rare earth materials takes full effect. The memorandum, which follows recent company engagements, designates dysprosium (Dy) and terbium (Tb) as two of the most critical and highest-value HREEs, aligning with REalloys' strategic focus on building HREE processing facilities in North America.
The Department of War's memorandum underscores a comprehensive, whole-of-government approach to fortifying America's HREE supply chain, with renewed support through financial investment, strategic policy, and expanded public-private partnerships. The company believes this 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. REalloys operates the only heavy rare earth metallization platform in North America and is scaling its platform by constructing 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 designed to comply 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 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... building a sovereign, zero-adversary-nexus supply chain is a fundamental national security imperative."
REalloys' integrated platform includes 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, and upstream domestic feedstock from 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.
The memorandum does not constitute a technical endorsement of REalloys or its commercial partners, and no assurance can be given that it will result in any contract or procurement award. However, the announcement signals strong government alignment with REalloys' mission as the 2027 deadline approaches.