REalloys Inc. (NASDAQ:ALOY), ("REA" or the "Company"), a U.S.-based mine-to-magnet rare earth company, today announced plans to build the largest heavy rare earth metallization facility outside of China and the first commercial-scale operation capable of meeting 2027 U.S. defense procurement bans on Chinese sourcing.

The equipment for REalloys' heavy rare earth metal facility (the "HREMF") will be built in Saskatoon in partnership with the Saskatchewan Research Council (the "SRC"). Following commissioning and initial test runs, it is anticipated the HREMF equipment will be relocated to Ohio to better serve REalloys' downstream U.S. defense industrial base customers and to supply U.S. Defense Logistics Agency (DLA) strategic rare earth stockpiles.

REalloys will own 100% of the HREMF. The platform will integrate with the Company's current metallization operations in Euclid, Ohio, which represent the only heavy rare earth metallization capability currently operating in North America and anchor REalloys' industry-leading rare earth intellectual property portfolio.

With initial operations currently targeted for early to mid 2027, and full commercial scale operations currently expected in mid-to-late 2027, the HREMF will represent the first and only commercial-scale heavy rare earth metallization platform with zero-Chinese nexus, coming online as U.S. defense procurement waivers permitting sourcing from non-allied nations expire and statutory restrictions take full effect. In a sector still defined by pilot projects and scale-up risk, this facility aims to resolve the industry's core bottleneck: secure North American metallization of Dysprosium (Dy) and Terbium (Tb) for high-performance defense magnets.

This builds on the partnership REalloys and SRC first announced in December 2025, which will see REalloys invest in expanded production capacity at SRC's Rare Earth Processing Facility (REPF) in Saskatoon, SK, in exchange for 80% of the facility's output. Once in full operation, SRC's REPF facility is anticipated to produce high-purity Neodymium-Praseodymium (NdPr) metal and Dy and Tb oxides, which will then be further processed and metallized at REalloys' HREMF.



The Company believes that this alignment will assist in establishing a fully allied source of Dy and Tb metals for defense and advanced manufacturing supply chains servicing strategic and protected markets.

The project marks a pivotal step in creating North America's first integrated heavy rare earth value chain, linking resource security and midstream processing in Canada with downstream metallization and manufacturing in the United States. SRC's REPF, the first and largest commercial-scale rare earth processing facility in North America, provides the proven technical and operational base for this project, ensuring the Ohio facility moves directly into commercial production.

This initiative reflects a broader alignment between Canada and the United States under Title 50 and related defense production frameworks to secure critical materials within allied borders. With new procurement restrictions from non-allied nations (including China, Russia, Iran and North Korea) under 10 U.S.C. §4872 and DFARS 252.225-7052 set to take effect in 2027, the REalloys–SRC partnership delivers a compliant, zero-China nexus supply chain solution built on established infrastructure, advanced automation, and proven operating expertise.

The Company believes this integrated supply chain creates an unparalleled foundation that brings proven scale, capability, technical maturity, and operational readiness to an industry that is extremely vulnerable from a national security perspective. In a sector still dominated by projects facing permitting, financing, and technology risk, the Company believes that the REalloys–SRC collaboration stands apart as an established, fully aligned platform capable of meeting defense and industrial supply requirements across both nations on an accelerated timeline.