Pentagon awards 300-ton/year rare earth contract, bolstering RTX’s jet engine and missile supply
Pentagon awarded a DLA contract to REAlloys for engineering design of a modular facility capable of producing 300 tons/year of samarium and gadolinium for weapons systems. The move responds to 2027 procurement rules banning Chinese-origin rare earths and aims to rebuild U.S. metallization capacity vital for RTX’s jet engines and missile components.
1. DLA awards REAlloys contract for rare earth metallization
The Defense Logistics Agency awarded REAlloys a contract to engineer a modular production facility designed to output roughly 300 tons per year of samarium and gadolinium. This capacity is intended to accelerate domestic metallothermal processing and reduce reliance on foreign supply for critical defense materials.
2. Implications for RTX and defense systems
RTX’s jet engine and missile divisions depend on high-purity rare earth metals such as samarium-cobalt magnets and gadolinium alloys. Domestic production of these materials will ensure consistent specifications and reduce risks of supply disruptions for RTX’s advanced weapon and aerospace platforms.
3. 2027 procurement rules tighten Chinese material ban
Beginning in 2027, defense procurement rules will bar Chinese-origin rare earth materials, creating a strategic deadline for U.S. industrial capacity. The modular approach in the REAlloys project is designed for rapid deployment and scalability to meet these new requirements.