U.S. Army Awards REalloys Utah Rare Earth Plant Lease, $20.6M Saskatchewan Upgrade
ALB•The U.S. Army awarded REalloys a contract to build a heavy rare earth processing facility at Tooele Army Depot, targeting dysprosium and terbium refining by 2028, presenting upside for Albemarle Corp. REalloys also committed $20.6 million to upgrade Saskatchewan facilities, securing 80% of expanded rare earth output.
1. Contract Award and Facility Details
The Army selected REalloys to build and operate the first commercial heavy rare earth processing complex on a U.S. military installation at Tooele Army Depot in Utah. The facility will refine dysprosium and terbium, two critical elements for permanent magnets, with construction starting in 2027 and initial operating capability by 2028.
2. Saskatchewan Upgrade and Supply Commitments
REalloys invested $20.6 million in upgrades at the Saskatchewan Research Council’s rare earth facility, securing 80% of the expanded output, including NdPr metal plus dysprosium and terbium oxides. Feedstock agreements and downstream rights position the company to control multiple supply chain stages.
3. Strategic Implications for Albemarle and U.S. Security
This initiative aligns with new procurement bans on Chinese rare earths effective January 1, 2027, and could diversify supply for Albemarle Corp and other producers. Integrating commercial processing into defense infrastructure accelerates U.S. rare earth independence and may reshape global market dynamics.
