The U.S. Army has taken a major step to secure America’s supply of critical heavy rare earth elements by awarding REalloys the opportunity to build and operate the nation’s first commercial processing facility on a military installation. This groundbreaking project will be located at the Tooele Army Depot in Utah and will focus on refining dysprosium and terbium, essential materials for high-temperature permanent magnets used in advanced defense technologies.
The initiative is designed to integrate commercial critical mineral processing directly into the U.S. national security framework. The Tooele complex will not only support the Army but also serve the Defense Logistics Agency, Department of Energy, and NASA. Construction is planned to start in 2027 with operations expected by 2028, aligning with the federal prohibition starting January 1, 2027, on procuring Chinese rare earth materials for defense systems. This timeline illustrates a rapid move towards developing a domestic heavy rare earth supply chain.
REalloys will develop and operate the processing facility under an Enhanced Use Lease, a structure that allows private ownership and financing while utilizing federal military property. This project expands REalloys’ role beyond earlier contracts focused on metallization technology and production of samarium and gadolinium, supported previously by the Defense Logistics Agency. The Tooele plant will add critical heavy rare earth processing capabilities, strengthening the overall domestic industrial base.
The company’s selection reflects its existing infrastructure and expertise. Over recent years, REalloys secured feedstock agreements and processing rights, along with technological partnerships such as with the Saskatchewan Research Council. REalloys has invested millions in upgrading the Canadian facility to increase capacity for producing NdPr metals and key oxides. These arrangements position the company to establish what may become the largest heavy rare earth metallization facility outside China, further reducing reliance on foreign sources.
The U.S. government’s accelerated efforts illustrate a strategic push to compress years of supply chain development into a short timeframe, aiming to build an integrated domestic critical minerals industry. By situating the processing plant on a military installation, the Army underscores the critical importance of rare earth elements to national defense and seeks to safeguard supply chains against geopolitical risks.