- REAlloys announces largest heavy rare-earth metallization facility outside China.
- Project aligns with U.S. 2027 ban on Chinese-origin rare earths in defense systems.
- Washington may have only two months of rare-earth inventories left if disruptions worsen.
- Rare earths are vital for missiles, fighter jets, radar, EVs, and wind turbines.
- REAlloys-SRC partnership aims to build a fully allied supply chain in North America.
- Planned U.S. magnet facility could produce up to 10,000 tons annually.
Washington, March 19 2026 (Agencies) – REAlloys has announced plans to construct the largest heavy rare-earth metallization facility outside China, a move designed to secure one of the most fragile links in the Western defense supply chain. The fully financed project comes as the U.S. prepares to enforce its 2027 ban on Chinese-origin rare earth materials in weapons systems.
Concerns over supply availability are mounting. Reports suggest Washington may have only two months of rare-earth inventories available for defense manufacturing if disruptions deepen. Shortages are already surfacing in industrial markets, with suppliers to aerospace and semiconductor firms turning away customers as niche materials tighten.
Rare earth elements underpin critical defense technologies, from missile guidance systems and drone propulsion to radar arrays and advanced fighter aircraft electronics. “If China said we’re not going to give you rare earths, that means no F-35s, no missiles,” warned Mike Crabtree, CEO of the Saskatchewan Research Council (SRC).
For decades, China has dominated the metallization stage of the supply chain—the conversion of rare-earth oxides into usable metals and alloys for permanent magnets. REAlloys’ Euclid, Ohio facility is one of the few in North America already performing this step. The new buildout, in partnership with SRC, will expand capacity to produce neodymium-praseodymium alloys along with dysprosium and terbium, essential for high-performance magnets.
The company also plans a large-scale NdFeB magnet manufacturing facility in the U.S., initially capable of producing 3,000 tons annually and scaling to 10,000 tons. At full capacity, it could supply magnets for up to 2 million electric vehicles each year, thousands of wind turbines, and advanced defense systems.
Defense contractors such as General Dynamics, Honeywell, and L3Harris Technologies stand to benefit from a secure domestic supply chain. By combining Canadian processing with U.S. metallization and manufacturing, the REAlloys-SRC platform aims to establish one of the largest non-Asian rare-earth magnet hubs in the world.
“Any reliance on China creates strategic vulnerability,” said REAlloys’ chief technical officer Andy Sherman. “To be even 1% reliant on China is, in practical terms, to be 100% exposed.”