REalloys Inc. (NASDAQ: ALOY) announced the signing of a non-binding Memorandum of Understanding with U.S. Critical Materials Corp., owner of the Sheep Creek rare earth project in Ravalli County, Montana. The agreement establishes a framework for REalloys to secure up to 10% offtake from what is described as the highest-grade rare earth deposit in the United States. The Sheep Creek deposit averages approximately 9% TREO across a 7,277.5-acre land package with over 60 identified carbonatite formations, independently verified by Activation Laboratories and Idaho National Laboratory. The deposit contains confirmed dysprosium and terbium, the two most strategically sensitive heavy rare earth elements powering high-performance permanent magnets in F-35 fighter aircraft, missile guidance systems, radar platforms, and virtually every advanced U.S. defense platform.
At 10% offtake from a deposit of this grade and scale, REalloys gains a potentially material and strategic domestic feedstock source to complement its diversified global allied-nation supply network. This adds a critical domestic anchor as procurement restrictions on Chinese-sourced rare earths take full effect in 2027. The MOU also establishes a framework for potential strategic equity investment and equity exchange, joint pursuit of government financing, and coordinated government relations. Lipi Sternheim, Chief Executive Officer of REalloys, stated the company is executing a fundamentally different strategy by partnering with the highest-grade developers across allied nations to build a diversified supply network specifically designed to counteract Chinese dominance. Working closely with partners in government and across the Defense Industrial Base, REalloys is identifying strategic assets that plug into its advanced midstream and downstream ecosystem to fortify supply chain security for protected and strategic markets, with zero Chinese involvement at any stage.
Harvey Kaye, Executive Chairman of U.S. Critical Materials Corp., emphasized the national security implications, noting that Sheep Creek is America’s rare earth answer to Chinese supply dominance. The United States cannot claim critical mineral sovereignty while depending on foreign adversaries for the heavy rare earths that guide missiles, power fighter jets, and drive every advanced defense platform in the arsenal. Under the MOU, the parties will advance metallurgical test work, optimize HREE processing flowsheets, and negotiate a definitive long-term offtake agreement, with reasonable efforts to execute within one year of the MOU date. The partnership presents Congress and the executive branch with a unified, fully domestic HREE supply chain narrative built on zero Chinese involvement at any stage.
REalloys' Ohio facility serves federal logistics and procurement agencies supporting the Department of Defense, the Department of Energy, and the National Aeronautics and Space Administration, in addition to the broader Defense Industrial Base and Organic Industrial Base. The company is advancing a fully integrated North American mine-to-magnet supply chain encompassing upstream resource development, midstream processing, and downstream manufacturing. For more information about U.S. Critical Materials Corp., visit https://www.uscriticalmaterials.com. REalloys uses its investor website at https://www.realloys.com as a means of disclosing material non-public information and for complying with Regulation FD. The latest news and updates relating to $ALOY are available in the company’s newsroom at https://tinyurl.com/aloynewsroom.
