REalloys is negotiating a 75-year lease at Tooele Army Depot to process dysprosium and terbium, positioning the company to meet urgent Pentagon procurement requirements by early 2027.
The U.S. Army selected REalloys for exclusive negotiations to build heavy rare earth (dysprosium and terbium) processing on 200 acres at Tooele Army Depot, with a lease of up to 75 years and first access for the Army to the output. With Pentagon procurement rules pushing Chinese material out from January 1, 2027 and contractors needing a non-Chinese source within weeks, REalloys, whose Saskatchewan facility is slated for first metal in early 2027, is positioned as one of few eligible suppliers. The term sheet is non-binding, which caps certainty until definitive agreements and offtake terms ar
REalloys has entered into a non-binding term sheet with the U.S. Army to develop heavy rare earth processing facilities at the Tooele Army Depot in Utah. The potential 75-year lease agreement aims to secure domestic supplies of dysprosium and terbium, critical components for defense systems, ahead of a January 1, 2027, Pentagon deadline that restricts the use of Chinese-sourced materials in the defense supply chain.
A non-binding term sheet putting REalloys into exclusive negotiations to develop heavy rare earth processing on 200 acres at Tooele Army Depot in Utah, with an initial 50-year lease term and a possible 25-year extension, giving the Army first access to the metals produced.
From January 1, 2027, Pentagon procurement rules start pushing Chinese-sourced material out of the defense magnet supply chain, and contractors have only weeks to find another source of dysprosium and terbium, which China currently nearly exclusively produces.