REalloys Secures 80% Heavy Rare Earth Offtake After China Ban
GD•China banned antimony exports in December 2024, triggering a 2,600% price surge and a 97% drop in U.S. shipments. REalloys controls 80% offtake from North America’s sole non-Chinese heavy rare earth plant and secures feedstock from five countries ahead of January 2027 DFARS rules.
1. China’s Rare Earth Export Controls
Since August 2024, Beijing has imposed export licensing and outright bans on key minerals, beginning with antimony and expanding to gallium, germanium, and seven heavy rare earths including dysprosium and terbium, tightening technology transfer rules and curbing foreign-made products containing Chinese-origin materials.
2. Antimony Precedent and Price Impact
The December 2024 antimony ban drove prices from $1,400 to $38,000 per ton — a 2,600% surge — while U.S. shipments plunged 97%, illustrating how a single mineral restriction can devastate supply chains and spotlight the strategic importance of non-Chinese providers.
3. REalloys’ Supply Chain Strategy
REalloys holds an exclusive 80% offtake agreement with North America’s only non-Chinese heavy rare earth processing plant, operates a metallization facility in Ohio, and sources feedstock from the U.S., Canada, Brazil, Kazakhstan and Greenland, ensuring a diversified, China-free production chain.
4. DFARS Deadline and Defense Demand
The Defense Federal Acquisition Regulation Supplement goes into effect January 1, 2027, banning Chinese-origin rare earths throughout U.S. defense procurement, forcing defense primes like Lockheed Martin and Northrop Grumman to secure compliant heavy rare earths from suppliers such as REalloys.
