AI-Driven Saskatchewan Plant to Supply 460 Tonnes of Defense Metals
An AI-operated Saskatchewan plant will refine rare earth elements into 460 tonnes of defense-grade metals annually starting 2027 under an exclusive offtake with REalloys, bypassing China’s 90% processing share. Pentagon procurement rules will ban Chinese-sourced rare earths from all U.S. defense supply chains.
1. China’s Rare Earth Processing Monopoly
China controls roughly 90% of global rare earth processing through hundreds of hazardous chemical plants, leaving Western defense supply chains dependent on monthly export licenses that can be revoked at Beijing’s discretion, posing production risks for fighter jets, drones and missile systems.
2. Saskatchewan AI Plant and Defense Impact
A demonstration plant in Saskatchewan uses AI to automate separation of 17 rare earth elements with an 80-person reduction in labor, refining feedstock into higher-purity metals. Under an exclusive offtake deal, REalloys will convert these into 460 tonnes of defense-grade alloys annually from 2027, meeting new Pentagon rules banning Chinese-sourced materials and securing supply for defense contractors like RTX.