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U.S. Army Partners with REalloys to Break Dependence on Chinese Rare Earths

The U.S. Army has greenlit a plan to host a commercial rare earth processing facility at the Tooele Army Depot in Utah, marking a pivotal shift in national security strategy to bypass Chinese supply chains ahead of a strict 2027 federal procurement deadline for defense-critical materials.

U.S. Army Partners with REalloys to Break Dependence on Chinese Rare Earths

REalloys will build and operate the complex, which is designed to refine dysprosium and terbium—essential elements for high-temperature permanent magnets used in advanced defense systems. By integrating commercial mineral processing directly into military infrastructure, the government aims to secure a reliable domestic pipeline for critical components. Operations are scheduled to commence no later than 2028, creating a bridge for defense contractors who must certify their supply chains as free of Chinese materials by January 1, 2027.

This initiative addresses a long-standing vulnerability in the U.S. defense industrial base. Major contractors like Lockheed Martin, RTX, and Northrop Grumman currently rely on rare earth components for systems ranging from F-35 fighter jets to the B-21 Raider bomber and sophisticated radar networks. REalloys has spent the last two years consolidating feedstock agreements and metallization technology, including a strategic partnership with the Saskatchewan Research Council. With the backing of the Defense Logistics Agency and the integration of supply sources from Greenland, Montana, and Wyoming, the project represents a coordinated effort to reconstruct a domestic industry that had largely migrated overseas over the past several decades.

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