REalloys Initiates Qualification Effort for Defense-Grade Heavy Rare Earth Materials to Meet DFARS 252.225-7052 January 1, 2027, Deadline
- REalloys to receive high-purity Dysprosium (Dy), and Terbium (Tb) oxides for qualification as early as Q4 2026, from its landmark arrangement with the Saskatchewan Research Council.
- Rare earth materials will support customer qualification and supply chain validation ahead of the January 1, 2027, DFARS 252.225-7052 deadline, after which Chinese-origin rare earth materials become non-compliant for covered U.S. defense procurements.
EUCLID, Ohio, June 10, 2026 (GLOBE NEWSWIRE) -- REalloys Inc. ("REalloys") today announced that the Saskatchewan Research Council (SRC) is expected to supply high-purity heavy rare earth materials to REalloys for qualification in the fourth quarter of 2026. SRC will produce magnet-grade Dy and Tb oxides along with NdPr oxide for REalloys, which are anticipated to be available for qualification and are expected to support REalloys' downstream metallization and permanent magnet manufacturing strategy centered on its Euclid, Ohio facility.
Under the U.S. defense acquisition rule DFARS 252.225-7052, which implements statutory requirements under 10 U.S.C. § 4872, beginning January 1, 2027, the Department of Defense (DoD) will be prohibited from procuring covered systems containing permanent magnets if the magnets or their constituent rare earth materials originate from prohibited sources, including China. The deadline effectively creates a hard compliance date for DoD primes and suppliers. After January 1, 2027, many existing Chinese-linked rare earth magnet supply chains will become non-compliant for covered defense procurements, which is anticipated to create demand for qualified Western sources of Dy, Tb, and NdPr oxides, metals, alloys, and finished magnets.
The anticipated Q4 2026 materials are intended to support customer qualification activities, supply chain validation, and commercial engagement efforts ahead of REalloys' planned commercial production ramp and the January 1, 2027, DFARS compliance deadline. Successful qualification can serve as a precursor to long-term commercial supply agreements with defense, aerospace, industrial, and other permanent magnet producers.
REalloys has secured exclusive offtake for 80% of the commercial output from SRC's heavy rare earth separation and metallization facility, providing a unique North American source of Dy, Tb, and NdPr materials for downstream magnet manufacturing. This SRC facility's initial commercial production remains on track for early 2027. Additionally, REalloys is continuing development efforts toward a wholly owned heavy rare earth metallization facility with support from SRC, which is expected to be one of the only commercial-scale North American sources of Dy and Tb metals, critical inputs for high-performance permanent magnets used in defense and advanced industrial applications.
"With the DFARS January 1, 2027, deadline now less than seven months away, we want to begin qualifying North American dysprosium, terbium, and other rare earth materials for defense and industrial permanent magnets. Through our partnership with SRC and our downstream metallization strategy in Ohio, we believe that REalloys is positioning itself to become a leading North American supplier of the heavy rare earth materials required for compliant defense supply chains," said Lipi Sternheim, REalloys CEO. "We have one simple goal: to ensure that the U.S. defense ecosystem has access to 100% non-Chinese rare earth materials, particularly heavy rare earths like Dysprosium and Terbium, to support our men and women in uniform."
"SRC is on the cusp of powering on North America's first fully integrated Rare Earth Processing Facility, capable of producing commercial quantities of NdPr metals and Dy and Tb oxides," said Mike Crabtree, President and CEO of SRC. "This is the first and only facility of its kind, completely independent of China, aimed to establish a safe and secure global supply chain of these critical metals required for advanced technology."
ABOUT REALLOYS INC.
REalloys Inc. is advancing a fully integrated North American mine-to-magnet supply chain encompassing upstream resource development, midstream processing, and downstream manufacturing. REalloys' upstream foundation includes its Hoidas Lake rare earth asset in Saskatchewan and a diversified network of allied feedstock and recycling partners. Together with SRC, REalloys is funding and contracting the scale-up of North American heavy rare earth midstream separation, refining, and metallization capabilities, securing exclusive access to the commercial output to supply its downstream manufacturing operations in Euclid, Ohio. REalloys' Ohio facility serves federal logistics and procurement agencies supporting the Department of Defense, the Department of Energy, and the National Aeronautics and Space Administration, in addition to the broader defense industrial base and Organic Industrial Base.
For more information, please visit www.REalloys.com or email InvestInAmerica@REalloys.com.
ABOUT THE SASKATCHEWAN RESEARCH COUNCIL (SRC)
SRC is Canada's second-largest research and technology organization. As a catalyst for innovation, SRC focuses on providing leading-edge services and solutions to the agriculture, energy, environment, and mining industries. SRC is constructing North America's first fully integrated commercial rare earth processing facility. With a workforce of more than 400 employees and nearly 80 years of applied research and development experience, SRC supports 1,400 clients in more than 15 countries.
SAFE HARBOR CLAUSE AND FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of applicable securities laws, including the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding: the anticipated production, supply, quality, purity, timing, and availability of Neodymium-Praseodymium (NdPr) metals and NdPr, Dysprosium (Dy), and Terbium (Tb) oxides under REalloys' accelerated production program with the Saskatchewan Research Council ("SRC") and related timelines; the expected generation of qualification-scale quantities of light and heavy rare earth materials beginning in the fourth quarter of 2026; the anticipated acceleration of production timelines relative to REalloys' planned commercial production schedule; the expected qualification, validation, and commercial use of materials produced under the program; the anticipated ability of such materials to support customer qualification activities, supply chain validation, commercial engagement efforts, and future commercial supply agreements; REalloys' anticipated downstream metallization and permanent magnet manufacturing activities; the development, timing, scale, commissioning, operation, and commercial significance of REalloys' heavy rare earth metallization facility in Euclid, Ohio; the anticipated capabilities, production capacity, timing, and strategic significance of SRC's rare earth processing facilities; REalloys' rights to and benefits from its commercial arrangements with SRC, including anticipated access to commercial output; the expected demand for North American rare earth materials, metals, alloys, and magnets arising from DFARS 252.225-7052, 10 U.S.C. § 4872, or other defense procurement requirements; the ability of REalloys to become a leading North American supplier of heavy rare earth materials; and REalloys' broader strategic, operational, technological, commercial, and financing plans. Words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "project," "seek," "should," "target," "will," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words.
Forward-looking statements are based on current expectations, assumptions, estimates, and projections and involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such statements. These statements are not guarantees of future performance. Factors that could cause actual results to differ materially include, but are not limited to: delays or failures in securing feedstock, reagents, equipment, permits, approvals, financing, labor, transportation, utilities, or other required inputs; the inability to achieve targeted production schedules, product specifications, purity levels, recoveries, yields, or commercial scale-up objectives; challenges associated with metallization, separation, refining, alloying, and magnet manufacturing technologies; delays in the construction, commissioning, qualification, or operation of REalloys' or SRC's facilities; changes to commercial arrangements between REalloys and SRC; failure to achieve anticipated qualification, validation, or commercial acceptance by customers; inability to secure definitive commercial agreements, supply agreements, offtake agreements, or customer purchase orders; changes in rare earth pricing, market demand, customer requirements, or competitive dynamics; changes in U.S., Canadian, or international laws, regulations, trade policies, tariffs, sanctions, export controls, defense procurement rules, or critical minerals policies; the implementation, interpretation, enforcement, or modification of DFARS 252.225-7052, 10 U.S.C. § 4872, or related procurement requirements; geopolitical developments affecting critical mineral supply chains; capital availability and financing conditions; environmental, health, safety, permitting, and regulatory risks; and general economic, market, and business conditions.
All forward-looking statements speak only as of the date of this press release. REalloys undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on forward-looking statements.
For a discussion of additional risks and uncertainties that could affect REalloys' business, financial condition, and results of operations, please refer to REalloys' filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings available at www.sec.gov.
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REalloys Inc.
Sarah Riley
IR and Communications, REalloys
sarah.riley@realloys.com
www.realloys.com
