REalloys Inc. announced plans to construct the largest heavy rare earth metallization facility outside China through a partnership with the Saskatchewan Research Council. The facility, expected to begin initial operations in early to mid-2027, represents North America's first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing. The heavy rare earth metal facility will be built in Saskatoon before being relocated to Ohio to serve U.S. defense industrial base customers and supply Defense Logistics Agency strategic stockpiles.
REalloys will own 100% of the facility, which will integrate with the company's existing metallization operations in Euclid, Ohio. This creates the Western hemisphere's first end-to-end rare earth metal capability, according to Saskatchewan Research Council President and CEO Mike Crabtree. The project addresses a critical bottleneck in North American defense supply chains by providing secure metallization of dysprosium and terbium for high-performance defense magnets. These materials are essential for advanced military applications but have historically been dominated by Chinese production.
The facility is designed with zero-Chinese nexus to comply with upcoming U.S. defense procurement restrictions under 10 U.S.C. §4872 and DFARS 252.225-7052, which will prohibit sourcing from non-allied nations including China, Russia, Iran and North Korea. The partnership builds on an existing agreement where REalloys invested in expanded production capacity at SRC's Rare Earth Processing Facility in Saskatoon in exchange for 80% of the facility's output. This facility, described as North America's first and largest commercial-scale rare earth processing operation, will supply high-purity neodymium-praseodymium metal and dysprosium and terbium oxides for further processing at the new metallization facility.
Stephen duMont, Chairman of REalloys, emphasized that this represents "a defining moment for North American industrial strategy" that creates "the metallization capability that bridges Canadian oxide production with U.S. magnet manufacturing—a critical link that's never existed at scale in the West." The $40 million facility is expected to produce approximately 30 tonnes of dysprosium and 15 tonnes of terbium metal annually. The initiative reflects broader alignment between Canada and the United States under Title 50 and related defense production frameworks to secure critical materials within allied borders.
With the completion of a recent $50 million financing, REalloys reports being fully funded to advance the project, which moves directly into commercial production rather than operating as a pilot plant. The company maintains an investor website at https://www.realloys.com where it discloses material information.
