A rare earth metallization project in Euclid, Ohio, is progressing as supply arrangements are secured and engineering work advances. The facility is expected to process rare earth oxides into metals and alloys used in defense and high-performance technologies, with initial production targeted before new procurement restrictions take effect in 2027.

 

Under the new memorandum of understanding (MOU) with U.S. Critical Materials Corp., REAlloys will access up to 10% of production from the Sheep Creek rare earth project in Montana, securing dysprosium, terbium, yttrium, and neodymium-praseodymium (NdPr) — elements crucial for fighter aircraft, missile guidance systems, radar platforms, and other advanced defense applications. The Ohio facility in Euclid will convert rare earth oxides into metals and magnet-grade alloys, positioning the project as one of the few integrated North American heavy rare earth platforms capable of industrial-scale production.

Tight Timeline and Strategic Urgency

The timeline is pressing: by January 2027, Chinese-origin rare earths will no longer be permissible in U.S. military applications. The stakes are magnified by ongoing global conflicts consuming precision-guided munitions and high-performance weapons systems, increasing reliance on timely domestic supply.

“Metallization is one of the least developed parts of the value chain outside China,” said REAlloys co-founder Tim Johnston. “Even with strong execution and capital, building that capability is a multi-year effort.”

The Ohio facility, complemented by oxide separation work at the Saskatchewan Research Council in Canada, establishes a mine-to-metal pipeline aligned with U.S. procurement standards. REAlloys currently holds offtake on roughly 80% of SRC’s output. Giving it control over a significant non-Chinese supply of heavy rare earths.

Phase 1 and Phase 2 Development

Phase 1 targets 525 tonnes per year of NdPr metal, with dysprosium and terbium also processed. While phase 2 is expected to scale to 3,000 tonnes of NdPr, 200 tonnes of dysprosium, 45 tonnes of terbium, and roughly 20,000 tonnes of finished magnets, enabling defense and industrial applications at an unprecedented domestic scale.

Financing and Federal Support

The Export-Import Bank of the United States has issued a Letter of Interest for up to $200 million tied to the Ohio expansion. Signaling potential large-scale backing for domestic midstream and metallization capacity. Combined with Pentagon-linked contracts and advisory support from defense veterans — including Joe Kasper, former Chief of Staff to the Secretary of Defense, General Jack Keane, and Stephen duMont of GM Defense. REAlloys is positioning its Ohio facility as a cornerstone of U.S. rare earth independence.

Broader Industry Context

REAlloys is part of a broader North American push to secure critical minerals. Key developments include:

• Freeport-McMoRan Inc. optimizing U.S. copper production and maintaining high-grade deposits.
• Lithium Americas Corp. advancing the Thacker Pass lithium project in Nevada, with Phase 1 production expected later this decade.
• Lynas Rare Earths Ltd. progressing its Seadrift, Texas facility to produce dysprosium and terbium for defense and EV magnets.
• The Metals Company (TMC) developing seafloor nodules to provide nickel, cobalt, copper, and manganese for EVs and defense.
• Electra Battery Materials building a battery-grade cobalt sulfate refinery in Ontario, Canada, supporting U.S. EV supply chains under the Inflation Reduction Act.

These projects collectively underscore the strategic drive to localize critical material production. And reduce foreign dependence, and bolster U.S. defense and clean energy resilience.

Additionally, the Ohio expansion comes as upstream rare earth projects also advance across the United States. In Wyoming, American Rare Earths has awarded a development assessment for its Halleck Creek project, one of the largest rare earth deposits in North America. Together, these developments underscore how mining and processing capacity are being built in parallel, forming the foundation of a fully domestic rare earth supply chain.

REAlloys Rare Earth Processing Expansion — Factsheet

• Location: Euclid, Ohio, USA
• Developer: REAlloys Inc.
• Key Partners: U.S. Critical Materials Corp., Saskatchewan Research Council
• Phase 1 Capacity: 525 tonnes NdPr/year, including dysprosium and terbium
• Phase 2 Capacity: 3,000 tonnes NdPr, 200 tonnes dysprosium, 45 tonnes terbium, ~20,000 tonnes finished magnets
• Recent Milestones: MOU with Sheep Creek project; EXIM Letter of Interest; Pentagon advisory board added
• Construction Status: Pre-construction; scaling metallization platform
• Target Operational Date: Phase 1 commercial output by 2027
• Strategic Significance: Supports domestic defense supply chain; reduces reliance on Chinese rare earths
• Key Risks: Tight timeline; metallization scale-up; geopolitical supply chain pressures