Rare Earth Magnets Become Key Battleground Between U.S. and China

REalloys Inc. emerges as the only commercial-scale supplier of critical heavy rare earth metals in North America

Published on Feb. 27, 2026

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The struggle for geopolitical supremacy is rapidly becoming a struggle over one critical resource - rare earth magnets. Companies like REalloys Inc., Microsoft, NVIDIA, Alphabet, Tesla, and General Motors are all reliant on heavy rare earth elements that are vital for modern military equipment and industrial applications. REalloys operates the only facility in North America that can convert heavy rare earths into the high-performance metals and alloys required for defense systems, positioning it as a key player in the rare earth supply chain battle between the U.S. and China.

Why it matters

Winning the strategic competition over rare earth magnets is crucial for the U.S. military's ability to build equipment at scale and replace weapons as they are used. Heavy rare earths like dysprosium and terbium are non-negotiable inputs for precision-guided missiles and missile-defense systems. REalloys' domestic production capabilities make it a vital supplier for the U.S. Department of Defense as sourcing rules change to require fully domestic material.

The details

REalloys operates a facility in Euclid, Ohio that separates rare earth oxides and reduces them into metal under controlled atmospheres, then alloys them into magnet-grade compositions. The company has secured long-term offtake agreements for rare earth feedstock from Kazakhstan, Brazil, and Greenland to feed its U.S. production. REalloys is the only commercial-scale supplier of defense-grade heavy rare earth metals and alloys in North America, a capability that most other Western firms are still years away from developing.

  • REalloys expects to begin heavy rare earth production from its expanded Saskatchewan facility in early 2027.
  • New U.S. Department of Defense sourcing rules requiring fully domestic rare earth materials will go into effect in 2027.

The players

REalloys Inc.

An American company that operates the only facility in North America capable of converting heavy rare earths into the high-performance metals and alloys required for defense systems.

Saskatchewan Research Council (SRC)

A research and technology organization that operates a rare earth processing facility in Saskatoon, Saskatchewan, with REalloys securing 80% of the facility's annual heavy rare earth production.

AltynGroup

A Kazakhstani company that has a non-binding long-term offtake agreement to supply REalloys with rare earth feedstock containing both light and heavy rare earth elements.

St George Mining

A Brazilian mining company that has signed an offtake memorandum with REalloys for access to up to 40% of rare earth production from the Araxá project.

Tanbreez

A rare earth project in Greenland that has a 10-year offtake arrangement (at LOI stage) to supply REalloys with up to 15% of its annual rare earth concentrate production.

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What’s next

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The takeaway

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