REalloys and US Critical Materials Sign Rare Earth Deal
REalloys and U.S. Critical Materials signed a deal for a domestic rare earth supply chain. The Montana project aims to reduce reliance on Chinese imports.
Rare earth developers REalloys and U.S. Critical Materials Corp have signed a memorandum of understanding to establish a fully domestic supply chain for critical materials within the United States. This strategic partnership aligns with ongoing efforts by Washington to decrease industrial and military dependence on China.
Under the terms of the agreement, REalloys will secure an offtake of up to 10% from the Sheep Creek rare earth deposit, located in Ravalli County, Montana. The site is currently owned by U.S. Critical Materials. The move comes as the United States government intensifies efforts to secure domestic supplies of minerals essential for high-tech and defense applications, prompting a surge in activity among domestic miners and processors to build localized rare earth supply chains.
The Sheep Creek deposit is notable for its high concentrations of elements such as dysprosium and terbium. These materials are essential components for high-performance permanent magnets used in the F-35 fighter aircraft, missile guidance systems, and radar platforms.
Lipi Sternheim, the CEO of REalloys, emphasized the importance of the partnership in securing strategic resources.
We are identifying the strategic assets that plug into our advanced midstream and downstream ecosystem to fortify supply chain security for protected and strategic markets, with zero Chinese involvement at any stage.
Moving forward, REalloys and U.S. Critical Materials will collaborate on metallurgical testing to optimize the processing of heavy rare earths. The companies have set a goal to finalize a formal, long-term offtake agreement within the next twelve months.
