Key Takeaways:
- REalloys selected by US Army for rare earth processing at Tooele Army Depot.
- Dysprosium and terbium refining targeted by 2028 with no taxpayer subsidies.
- Deal aligns with 2027 federal ban on Chinese defense materials.
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REalloys wins US Army deal for rare earth processing by 2028
REalloys Inc. won conditional US Army selection to build heavy rare earth processing at Tooele Army Depot, targeting 2028 operations.
"Selection by the Army for a processing facility on American soil confirms the strength of our mine-to-magnet strategy," Leonard Sternheim, chief executive officer of REalloys, said.
The Enhanced Use Lease requires REalloys to finance, design, build, and operate the facility at its own cost, with the Army acting as landlord and retaining title under 10 U.S.C. Section 2667. The company plans to refine dysprosium and terbium — heavy rare earths essential for high-temperature permanent magnets used in precision-guided munitions, electric motors, and sonar systems. Development could begin as early as 2027, with initial operating capability no later than 2028.
The timeline aligns with a Jan. 1, 2027, US federal procurement ban on Chinese materials in the Defense Industrial Manufacturing Base. Domestic processing for dysprosium and terbium is one of the most strategically scarce links in the Western rare earth supply chain, according to the company. The award marks the first time the Army has sited commercial mineral-processing facilities on a military installation under Executive Order 14241.
Tooele and the Defense Supply Chain
The Tooele facility would extend REalloys' mine-to-magnet strategy deeper into US soil, drawing on Canadian heavy rare earth feedstock to feed its downstream separation and magnet operations. The company was named alongside Titan Mining Corp. as part of a small group of US-organized industry partners selected by the Army's Strategic Capital Initiatives to build domestic processing for minerals essential to munitions, missiles, sensors, and batteries.
General Jack Keane (Ret.), a board director at REalloys, said the Army's decision to use its installations for domestic rare earth processing was "strategically sound and operationally necessary." Stephen duMont, chairman of REalloys, described the selection as a strategic inflection point for the company and the broader effort to establish sovereign heavy rare earth processing in the US.
No construction will begin until environmental reviews under the National Environmental Policy Act, the Clean Air Act, and the Clean Water Act are complete, along with all required federal, state, and local permits. A mandatory decommissioning bond ensures funds are secured to return the land to its original condition at lease end. The Army prefers to receive rent as in-kind consideration funding infrastructure improvements that benefit soldiers and families.
REalloys trades on the Nasdaq under the ticker ALOY. The company is headquartered in Boca Raton, Florida, with operational activities centered in Euclid, Ohio.
This article is for informational purposes only and does not constitute investment advice.
[1] REalloys Selected by the U.S. Army to Help Build America's Heavy Rare Earth Supply Chain[2] REalloys (NASDAQ: ALOY) Announces Landmark Partnership Agreement with The United States Army & Army’s Strategic Capital Initiatives to Operate Processing Facilities on The Tooele Army Base in Utah - The Manila Times[3] US Army selects Titan, REalloys to build critical mineral processing sites[4] U.S. to allow REalloys, Titan Mining to build critical minerals processing plants at military bases[5] US Army contracts for critical minerals processing at military bases
