The U.S. company is developing the facility together with its Canadian partner, the Saskatchewan Research Council, which will also supply the raw material.
The U.S. company REalloys plans to build what it says will be the largest factory for producing heavy rare earth metals outside China. The project is being developed as part of a partnership established in December 2025 with the Saskatchewan Research Council, which operates Canada’s first rare earth refinery in Saskatoon. Development, commissioning, and the first test runs of the new facility will take place there before it is relocated and integrated into REalloys’ existing production capacity in the U.S. state of Ohio. The Saskatchewan Research Council will also supply the raw materials for further processing into rare earth metals.
According to REalloys, the goal is to supply the U.S. defense industry and the national strategic materials reserve, in light of new legislation. Starting in 2027, the law will prohibit the use of rare earth magnets of Chinese origin in domestic military systems. Unlike earlier regulations, the rule covers the entire value chain, from mining and refining to separation, smelting, and manufacturing.
Full commercial operation of the new factory is expected to begin by the end of 2027, with a planned annual production of around 30 tonnes of dysprosium and 15 tonnes of terbium. Both materials are subject to export controls imposed by China nearly a year ago. As a result, supply conditions have tightened further. Samarium and gadolinium are also affected by the restrictions; REalloys announced just last week that it intends to begin producing these critical materials as well, with support from the U.S. Department of Defense.
More on Western supply chains for heavy rare earths: With the acquisition of Australian Strategic Materials and the announcement of the largest rare earth production outside China, Energy Fuels, another U.S. mining company, made headlines a few weeks ago.
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