Retired General Jack Keane, former Vice Chief of Staff of the U.S. Army, has accepted a position on the board of REalloys. This move coincides with the launch of North America’s first industrial-scale heavy rare-earth processing and metallization platform, which aims to enhance the defense supply chain. Historically, the U.S. defense industry has depended on Chinese processing for transforming rare earths into usable metals and alloys for weapon systems.
The recent merger between Blackboxstocks Inc. (NASDAQ: BLBX) and REalloys marks a significant shift, enabling the domestic production of rare-earth metals and alloys essential for various defense applications. These materials are critical in the manufacturing of magnets, motors, guidance systems, and electronics used across multiple weapons platforms. The urgency of this development is underscored by the potential impact on production during conflicts or supply shocks, which could hinder military readiness.
In response to these challenges, the U.S. Export-Import Bank has initiated a $10 billion critical minerals initiative, aimed at revitalizing strategic supply chains. REalloys has already secured a letter of interest from the U.S. Export-Import Bank for funding of up to $200 million. This merger not only consolidates assets but also facilitates vital midstream and downstream processing capabilities within North America, which have previously been lacking.
The cornerstone of this initiative is REalloys’ metallization facility located in Euclid, Ohio. This facility will reduce rare-earth oxides into finished metals and alloys domestically, eliminating the need to ship materials overseas for processing. Success in domestic metallization relies on a consistent supply of separated oxides, which REalloys has secured through a partnership with the Saskatchewan Research Council (SRC).
Under a long-term agreement, REalloys is set to obtain 80% of SRC’s expanded annual production, projected to commence in early 2027. This includes approximately 45 tonnes of dysprosium and terbium oxide, alongside 400-600 tonnes of high-purity neodymium-praseodymium (NdPr) metal. SRC’s vertically integrated processing platform is free of Chinese components and utilizes advanced AI-driven technologies for process control.
The strategic collaboration between SRC and REalloys positions them as one of the few scalable, defense-compliant solutions that meet the 2027 procurement restrictions on Chinese-origin rare earths for defense applications. To further enhance supply security, REalloys is exploring agreements with heavy rare-earth producers in Brazil, Greenland, and Kazakhstan.
In Brazil, REalloys has formed an alliance with St George Mining (ASX: SGQ) to secure up to 40% of production from the Araxá Project. Similarly, a Letter of Intent tied to the Critical Metals Corp. (NASDAQ: CRML) Tanbreez project in Greenland will ensure a multi-year offtake agreement covering up to 6.75 million metric tons of rare-earth concentrate. This agreement represents about 15% of the projected output, with a quarter of Tanbreez’s production earmarked for North American customers.
The recent agreements also include securing rare-earth feedstock from the Kokbulak project in Kazakhstan, which will provide a 10-year offtake structure for rare-earth-bearing concentrate derived from iron tailings. This material includes crucial elements like terbium and dysprosium, essential for advanced defense systems and high-performance magnets.
Additionally, a collaboration between Mission Critical Materials and REalloys aims to extract heavy rare-earth elements from mine waste and acid mine drainage. This initiative seeks to create a secondary feedstock stream for magnet-grade materials, reinforcing the secure, non-Chinese supply chain necessary for defense applications.
The transition from reliance on foreign processing to establishing domestic capabilities is vital for North America’s ability to scale industrial and defense production. Jack Keane emphasized the importance of securing strategic resources, stating, “Dependence on adversaries for these materials is a vulnerability we can no longer accept.” His involvement in REalloys reflects the increasing recognition of the production gap within defense planning circles.
Other companies are also making strides in the critical minerals sector. MP Materials Corp. (NYSE: MP) operates the Mountain Pass mine in California, the only large-scale rare earth mining and processing facility in North America. MP Materials is focused on producing neodymium-praseodymium, a key input for high-strength permanent magnets used in various applications, including electric vehicles and defense systems.
Albemarle Corporation (NYSE: ALB), the world’s largest lithium producer, is navigating a downturn in lithium prices while continuing to invest in processing capacity to strengthen its supply chain for battery-grade materials. Meanwhile, Freeport-McMoRan Inc. (NYSE: FCX) and BHP Group (NYSE: BHP) are positioning themselves as critical players in the copper market, essential for electrification and renewable energy infrastructure.
As the strategic importance of rare earths continues to rise, the developments around REalloys and its partners highlight a significant shift towards securing domestic production capabilities. This new focus on rare earth security not only impacts defense supply chains but also represents a broader commitment to reducing reliance on external sources for critical materials.
