Ohio Magnet Plant to Produce 3,000–10,000 Tons for Honeywell Defense Supply
Beginning 2027 U.S. defense procurement rules will ban Chinese-sourced rare-earth magnets, risking shortages for system suppliers. REAlloys plans a fully financed heavy rare-earth metallization plant in Euclid, Ohio plus a 3,000–10,000-ton magnet facility to secure domestic feedstock for contractors like Honeywell.
1. Defense Procurement Rule Changes
From 2027, U.S. defense systems cannot use magnets derived from Chinese rare-earths, forcing contractors to secure domestically processed materials to comply with new regulations and prevent potential production delays.
2. REAlloys Ohio Metallization Facility
REAlloys will construct a heavy rare-earth metallization plant in Euclid, Ohio capable of converting oxides into magnet-grade alloys, filling a critical midstream gap and targeting initial output to meet defense procurement deadlines.
3. Magnet Manufacturing Capacity and Timeline
The project includes a NdFeB magnet manufacturing facility set to produce 3,000 tons annually in its first phase and scale to 10,000 tons, sufficient for roughly 1.5–2 million EVs, thousands of wind turbines and defense systems.
4. Implications for Honeywell's Supply Chain
Honeywell’s radar, missile and other defense platforms stand to benefit from reliable access to high-performance magnets, reducing exposure to Chinese supply concentration and aligning material availability with contract schedules.