Downstream: the Euclid, Ohio facility (via PMT Critical Metals / related entities) positioned as a domestic center for metallization, alloying, and magnet fabrication, with a stated track record of delivering heavy rare earth metals/alloys/magnets and participation in multiple U.S. government contracts/programs.
Strategic MOUs/financing support: an MOU with JOGMEC referenced for Japanese technology transfer and potential financing support for a North American rare earth-to-magnet chain.
Project finance: EXIM has provided REalloys (NASDAQ: ALOY) with an LOI for $200M to support the development of our North American supply chain.
OP: I recently saw a press conference where Tim Cook the CEO of Apple was saying how they will be purchasing all of their magnets from America in their partnership with MP Materials. Now I saw that MP Materials is looking to process light magnets. You process heavy magnets. What is the difference and can you replace heavy magnets with light magnets?
TJ: “Light” and “heavy” in this context refer to the rare earth elements used and the magnet performance required. Most NdFeB magnets are based primarily on light rare earths (neodymium/praseodymium – Nd/Pr), which deliver high magnetic strength. Heavy rare earths such as dysprosium (Dy) and terbium (Tb) are typically added (via alloying or grain?boundary diffusion) to increase coercivity and maintain magnetic performance at higher operating temperatures and more demanding environments. In many high?temperature or mission?critical applications (defense/aerospace, certain motors, high-performance actuators), the heavy-REE-enhanced magnet design is chosen because it meets temperature and reliability requirements. You generally cannot “swap” a heavy?REE?enhanced magnet for a light?REE-only magnets. A simpler way to describe the difference is that light rare earths enable home and general consumer applications, heavy rare earths enable defense and critical applications.
OP: So if you can’t replace heavies with lights, how long would it take for MP Materials or another North American-based company to be in a position where they can process heavy rare earths and make heavy magnets?
TJ: A competitor would typically need to build (or secure) three hard pieces simultaneously; (i) reliable non?Chinese heavy?REE feedstock and separation into high?purity Dy/Tb oxides (doesn’t exist); (ii) an oxide?to?metal (“metallization”) capability for Dy/Tb (doesn’t exist); and (iii) downstream alloying/magnet fabrication that is DFARS?compliant for defense markets (limited). The metallization step is widely viewed as one of the least developed and most difficult parts of the value chain outside China. Realistically, moving from ‘project’ to commercial heavy?REE metallization and defense?qualified production often takes multiple years. Policy timing adds pressure: U.S. defense procurement restrictions tighten materially on January 1, 2027, for covered magnets/materials from covered countries across the supply chain.
OP: Tell me about magnets. Why are they so important, and what are they used for?
TJ: Permanent magnets are the enabling component for compact, high?efficiency electric motors, generators, sensors, and actuators. Rare?earth permanent magnets (especially NdFeB and SmCo) are critical when you need high power density and efficiency. This is why they show up across EV drivetrains, wind turbines, aerospace systems, robotics, drones, precision guidance, medical devices, and consumer electronics. Heavy rare earth additions (Dy/Tb) are particularly important in magnets that must retain performance at elevated temperatures and under harsh duty cycles.
OP: How many companies at this moment in time actually process heavy rare earths in North America?
TJ: There is currently no commercial scale heavy rare earth production in North America and the only commercial metallization of heavy rare earths today exists within China. To accelerate commercial production of heavy rare earths in North America, REalloys acquired PMT Critical Metals, in Euclid Ohio. PMT Critical Metals is the only facility in North America today with a proven track record delivering heavy rare earth metals and alloys under contract with the US government and commercial partners..
OP: So you are the only one. How big a lead do you have over your competitors?
TJ: REalloys (NASDAQ: ALOY) lead in this space is because we have been able to piece together a fragmented supply chain, capturing the limited capacity in the North American market. With first heavy rare earth (Dy/Tb oxides) production expected by late?2026/early?2027, our lead is measured in years for defense?qualified heavy?REE metal supply.
OP: You have actual clients and contracts with companies that you are delivering these metals to? Who are they?
TJ: Our Euclid facility has been a long-term contractor to the US government through the DOD and DOE, and we expect to continue to support the US government agencies and their associated vendors.
OP: In 2027, the government is bringing in strict importing rules for rare earth elements. Do you actually have North American-derived supply, and will you be producing these processed materials?
TJ: U.S. defense procurement rules (DFARS / 10 U.S.C. §4872) tighten on January 1, 2027, for certain covered magnets/materials from covered countries, extending to the supply chain (mining/refining/separation/melting/production). REalloys has developed a supply chain that begins with securing primary and recycled feedstock from North American and allied nations, with processing completed in North America, providing a unique, diversified supply chain with real processing capacity. “
OP: How far ahead of your competitors are you? Can they just outspend you? Or is it beyond economics? (supply chains, economics, skillset, investing, greenfields, approvals)
TJ: It’s beyond pure capex. The difficult parts include: (i) process know?how in processing, including solvent extraction and especially heavy?REE metallization; (ii) access to compliant feed and reagents/equipment devoid of Chinese influence; (ii) qualification with defense and strategic OEM supply chains; and (iv) permitting/ESG/operating discipline for hazardous/complex chemical flowsheets. Money helps, but learning curves and qualification cycles cannot be fully ‘bought’ quickly.
OP: What would a company need to do to catch up with you, and what sort of timeline would you be looking at for realistic North American production from a competitor?
TJ: A credible catch?up plan would require: securing non?Chinese Dy/Tb-bearing feed, commissioning a separation circuit to 99.5%+ oxides at commercial scale, building/qualifying oxide-to-metal reduction for Dy/Tb, and then scaling alloying/magnet fabrication with customer qualification. Even with strong execution and capital, a multi?year timeline (minimum ~3 to to 7+ years), with substantial technical and qualification risk.
OP: Just how complicated is it to process heavy rare earths? How many (can you go into detail about the processing and why it is almost impossible to copy).
TJ: Processing heavy rare earths at scale combines complex mineral chemistry, multi?stage cracking/leaching, impurity control, solvent extraction circuits with many stages, high purity requirements (99.5%+), and then metallization of oxides into metals via high?temperature reduction. Metallization is the least developed part of the value chain outside China and requires deep, accumulated operating expertise; process control systems must manage many variables to maintain stable yields and costs in continuous operation.
OP: With your expansion plans you will obviously need more feedstock. Can you tell me about the offtake deals you currently have in place?
TJ: Feedstock for the first 5 years of production with the SRC and metallization in Euclid, Ohio, has already been secured. For Phase 2, the scaled operation will continue to build off these core feedstock providers to include alternate primary and recycling feedstock providers. This includes our 100% owned, Hoidas Lake REE project in Saskatchewan, complemented by a diverse range of off-take MOUs with groups including but not limited to Critical Materials in Greenland, St George in Brazil, AltynGroup in Kazakhstan, and recycled inputs from Mission Critical Materials and other prominent partners.
OP: Tell me about your deal with the SRC and the economics behind it.
TJ: REalloys is funding upgrades to expand SRC REPF output to ~525 tpa NdPr metal, plus ~30 tpa Dy oxide and ~10 tpa Tb oxide. In return for its investment and a modest prepayment, we have secured 80% of the plant’s production under an exclusive operating and offtake arrangement. In addition, REalloys has contracted the SRC to construct a modular Dy/Tb oxide?to?metal conversion unit engineered and commissioned in Canada prior to relocation for operation at Euclid, Ohio.
OP: Tell me about the agreement with EXIM and the military
TJ: REalloys entered into an LOI with EXIM Bank for $200M of financing to support project financing of the Phase 2 processing facilities. The Euclid facility is a long-term U.S. government contractor for the supply and testing of specialty metals. It is intended that the financing from EXIM will enable the acceleration of the scaled supply of rare earth metals to the DOD and associated agencies.
OP: What happened with rare earths? How did China conquer the rare earth market? And what was the rest of the world doing?
TJ: Using technology first developed in North America, China built dominance over decades by investing heavily in separation/refining, accepting environmental externalities, developing deep process know?how, and integrating downstream into metals, alloys, magnets, and manufacturing supply chains. Much of the rest of the world underinvested in the less visible midstream steps (separation and metallization) and relied on globalized supply chains where China became the low?cost, high?scale incumbent.
OP: What knock-on effects did this have? How else did China benefit? (Manufacturing engine for the world, controls multiple industries, etc…)
TJ: Rare earths are enablers of magnets used in motors, electronics, defense components, and clean?energy manufacturing. By controlling the rare earth market, they have not only developed the ability to restrict international manufacturing of these items but also stifled innovation and development, allowing China to get further ahead in the supply of these items.
OP: So Elon Musk put out a tweet on April 14th of last year saying There’s nothing rare about rare earth, except the processing and separating. Can you tell us about what he means by this?
TJ: Rare earth elements are relatively widespread geologically; what is scarce is the industrial capability to economically separate them into high?purity individual oxides/metals and then convert them into alloys/magnets at scale, reliably, and compliantly. This is why REalloys has chosen to deliberately focus on this industrial ‘choke-point’ through leveraging a variety of different feedstocks to produce the refined metals and magnets domestically within North America.
OP: I saw the recent announcement that the US government will be investing $12 billion to build a rare earth stockpile. Is this just the raw materials or processed materials? Because if he just has the raw materials, that stockpile is worthless without the processing capabilities.
TJ: Project Vault is set to enable the securing of critical minerals and rare earths for strategic application with ~$12B in funding from EXIM and private capital. The intent of the stockpiles is to buffer supply shocks, but the type of stockpile is critically important. Refined oxides, metals, and magnets are what are needed in manufacturing applications for strategic initiatives. Manufacturers can’t use rocks. Therefore, the need for REalloys and the separation, refining, metallization, and magnet manufacturing capacity we are building is essential to ensure the right materials are available for critical applications.
OP: Just how dire really is the rare earth situation with China? How reliant were we really upon them?
TJ: The U.S. and allies remain heavily exposed to China in processing and magnet supply chains, even where mining occurs elsewhere. Policy actions and defense procurement rules reflect the national-security view that reliance on a single dominant processor creates strategic vulnerability, particularly for high?performance magnets used across defense and advanced manufacturing.
OP: Tell me about your facilities and production. What will you be producing in 2027, 2028, 2029 – before your competitors are even off to a start? What types of metals, quantities, and values?
TJ: From early 2027, we are expecting Phase 1 to be in commercial production, capable of producing ~525 tonnes/year of NdPr metal, ~30 tonnes/year Dy oxide, and ~10 tonnes/year Tb oxide (with REalloys securing 80% of production). In 2027, this will be paired with our own heavy rare earth metallization facility to convert Dy/ Tb oxides to metals ahead of magnet manufacturing.
In parallel to this REalloys is developing a facility capable of producing ~200 tonnes/year Dy metal and 45 tonnes/ year Tb metal, capable of producing ~20,000 tonnes/year of heavy rare earth permanent magnets later this decade.
OP: So would this make you the largest producer of rare earths in North America?
TJ: REalloys in conjunction with the SRC are expected to be the largest producer of refined Dy/Tb outside of China, located in North America and positioned to serve U.S. protected markets.
OP: Thanks for your time Tim. We look forward to seeing the developments over the coming months.
Here are a number of other resource companies to look into that are having an impact in the rare earth space and are directly affected by it:
Rio Tinto Group (NYSE: RIO)
Rio Tinto is broadening its portfolio beyond its historic reliance on iron ore by expanding into lithium and copper. The acquisition of Arcadium Lithium materially increased Rio’s exposure to battery raw materials and diversified risk away from the politically complex Jadar project in Serbia.
At the same time, the underground ramp-up at Oyu Tolgoi in Mongolia is progressing toward steady-state production, with the asset expected to become one of the largest new sources of copper globally. In North America, Rio continues development work on Resolution Copper alongside BHP, though permitting timelines remain a key variable.
Rio is also evaluating opportunities to recover additional critical minerals such as scandium and tellurium from existing operations, reflecting a broader strategy of extracting incremental value from established infrastructure. The company’s transition signals a recognition that long-term competitiveness in mining increasingly depends on diversified exposure to electrification metals.
Newmont Corporation (NYSE: NEM)
Newmont, historically the world’s largest gold producer, has meaningfully increased its copper exposure following the acquisition of Newcrest Mining. Assets such as Cadia in Australia and Red Chris in British Columbia have strengthened the company’s position in copper-gold porphyry systems with long reserve lives.
Post-acquisition, Newmont has prioritized portfolio optimization, divesting non-core mines and directing cash flow toward debt reduction and operational efficiencies. While gold remains the dominant earnings driver, copper is emerging as a material secondary growth lever aligned with electrification demand.
The company’s asset base spans stable jurisdictions in North America and Australia, providing geopolitical diversification. This dual exposure to gold , often viewed as a defensive asset , and copper , tied to structural industrial growth , creates a blended commodity profile attractive to investors seeking both stability and energy-transition leverage.
Lithium Americas Corp. (NYSE: LAC)
Lithium Americas is advancing the Thacker Pass project in Nevada, one of the largest identified lithium claystone resources in North America. The project has secured a substantial loan commitment from the U.S. Department of Energy and strategic equity participation from General Motors, underscoring its importance to domestic battery supply chains.
Following the separation of its North American and Argentine operations, the company is singularly focused on construction and phased development of Thacker Pass. Early works and site preparation are underway, with Phase 1 production targeted for later this decade.
If successfully executed, Thacker Pass could become a cornerstone source of U.S. lithium carbonate, materially reducing import reliance. The project’s scale and federal backing position Lithium Americas as a central participant in efforts to localize battery raw material production within North America.
Vale S.A. (NYSE: VALE)
Vale S.A. continues to reposition its portfolio to reflect shifting demand dynamics in battery and electrification markets. The Brazilian miner has further operationalized Vale Base Metals as an independently managed subsidiary, consolidating its nickel and copper assets across Canada, Brazil, and Indonesia under a growth-focused structure designed to attract strategic capital and partnerships.
Management is targeting a significant production uplift by the end of the decade, with copper capacity approaching 900,000 tonnes annually and nickel output trending toward 300,000 tonnes per year. Canadian operations, particularly Sudbury and Voisey’s Bay, remain core suppliers of low-carbon Class 1 nickel to Western automakers seeking secure, IRA-compliant material streams.
In Indonesia, Vale’s participation in HPAL processing ventures is expanding exposure to battery-grade intermediates derived from laterite deposits. Long-term supply frameworks with global automakers provide revenue visibility while strengthening Vale’s role in North American and European EV supply chains.
Energy Fuels Inc. (NYSE American: UUUU)
Energy Fuels Inc. has transformed its White Mesa Mill in Utah into a cornerstone asset for U.S. critical mineral processing. Beyond uranium recovery, the facility is now operating commercial-scale rare earth separation circuits, extracting value from monazite concentrates that were historically discarded as waste.
White Mesa remains uniquely licensed in the United States to manage radioactive byproducts associated with monazite processing, creating a substantial regulatory moat. By early 2026, the company is producing separated neodymium and praseodymium oxides domestically, reducing dependence on Chinese downstream capacity.
To secure feedstock, Energy Fuels has assembled heavy mineral sand assets in Madagascar and Brazil, creating vertical integration from mine to separation. This structure enables a dual revenue stream pairing uranium production with rare earth recovery, positioning the company as both an energy and strategic materials supplier.
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