Euclid Rare-Earth Plant to Supply General Dynamics Systems, Cutting China Reliance 90%
REAlloys has secured financing to build the largest rare-earth metallization plant in Euclid, Ohio, scheduled to open before U.S. defense procurement rules ban Chinese-origin magnets in 2027. The facility will supply magnet-grade alloys for General Dynamics’ missile, radar and F-35 systems, cutting reliance on China’s 90% share of rare-earth processing.
1. Euclid Metallization Plant Launch
REAlloys has obtained full financing to construct a rare-earth metallization plant in Euclid, Ohio, aimed at chemically reducing rare-earth oxides into neodymium-praseodymium alloys and magnet-grade metals. The facility will represent the largest metallization capacity outside China and is scheduled to open before 2027.
2. 2027 Defense Procurement Rule
New U.S. defense procurement regulations will prohibit magnets derived from Chinese rare-earth supply chains for military systems in 2027. This timeline creates urgent demand for domestically sourced magnet ingredients and strongly favors allied supply chains.
3. Impact on General Dynamics
The Euclid facility’s magnet-grade alloys will feed into General Dynamics’ missile, radar and F-35 programs, mitigating risks from China’s 90% processing dominance. Access to reliable domestic alloys should stabilize production costs and timelines for critical defense platforms.