Northrop Grumman Faces 2027 Alloy Ban, REalloys Builds 600-Ton Plant
Northrop Grumman’s F-35 and advanced systems require heavy rare earth alloys that China supplies 90%, risking production halt by January 1, 2027. REalloys expands its Ohio facility to 600 tons metal capacity in 2027 and plans 18,000 tons of NdFeB magnet output to fulfill domestic demand.
1. Rare Earth Supply Chain Vulnerability
Northrop Grumman’s F-35 jets and advanced systems rely on heavy rare earth alloys for permanent magnets, but China controls over 90% of that processing capacity. New procurement rules banning Chinese-origin materials take effect January 1, 2027, imposing a hard deadline for alternative suppliers.
2. REalloys Ohio Expansion
REalloys in Euclid, Ohio is scaling its metallization facility to 600 tons of high-purity heavy rare earth metals in 2027 and plans a downstream NdFeB magnet plant with up to 18,000 tons annual capacity. This expansion targets dysprosium and terbium outputs vital for high-temperature defense and EV applications.
3. Implications for Northrop Grumman
Securing domestic alloy production mitigates the risk of system shutdowns for Northrop’s stealth, sensor and electronic warfare platforms. A reliable U.S. supply chain could stabilize component costs and ensure uninterrupted F-35 production beyond the 2027 ban.