DoD Allocates $8.5B as REalloys Secures Kazakhstan Feedstock for Ohio Rare Earth Plant
U.S. DoD has allocated $8.5B to rebuild domestic rare earth supply chains and REalloys secured offtake of mixed light and heavy rare earths from Kazakhstan's Kokbulak feedstock. Its Euclid, Ohio metallization and alloying facility is the only North American plant converting these elements at scale into defense-grade metals and alloys.
1. DoD Funding Boost
The U.S. Department of Defense has committed $8.5 billion to restore domestic rare earth processing and conversion capacity. This funding is aimed at reducing reliance on foreign downstream conversion and accelerating existing North American operations.
2. Kokbulak Offtake Agreement
REalloys signed a long-term non-binding offtake agreement with AltynGroup’s Kokbulak project in Kazakhstan to secure mixed light and heavy rare earth feedstock including dysprosium and terbium. Feedstock will move directly into North American metallization without intermediate export as concentrates.
3. Euclid Conversion Facility
The Euclid, Ohio plant is the sole North American facility capable of large-scale metallization and alloying of heavy rare earth elements. It already supplies defense-grade magnets and metals to U.S. government customers under current operational capacity.
4. Upcoming Chinese Export Controls
New U.S. rules taking effect in 2027 will restrict the use of Chinese rare earths in defense and federally backed manufacturing. This regulatory change heightens the strategic importance of domestic conversion assets and feedstock security.