With Pentagon support, the aim is to reduce dependence on Chinese imports.
The Defense Logistics Agency (DLA), an agency of the Pentagon, has tasked U.S.-based company REAlloys with expanding the production of samarium and gadolinium. The two critical rare earth elements that have been subject to strict export restrictions from China, the main producer, for nearly a year. The U.S. currently relies almost entirely on imports from China for these materials.
These resources are critical for key sectors such as defense, healthcare, and energy. Samarium is used in samarium-cobalt magnets, which are far more heat-resistant than the widely used neodymium-iron-boron magnets, making them ideal for demanding applications like fighter jet engines and radar systems. Gadolinium is irreplaceable as a contrast agent in medical imaging and is also used in nuclear reactors.
Under the contract, REAlloys will develop a modular production facility with an annual capacity of 300 tons of metals. According to Reuters, funding for the project could reach up to $1.7 million. A provisional patent application has been filed for the underlying technology. The plan includes full recycling of all byproducts, aiming to reduce capital expenditure and production costs by up to 50%.
REAlloys is building a vertically integrated North American supply chain for rare earths—from the mine to the finished magnet. This includes developing the Hoidas Lake rare earth deposit in Saskatchewan, Canada, and producing rare earth metals and magnet materials in Ohio, USA. To further strengthen its production network, the company entered into a partnership late last year with the Saskatchewan Research Council, operator of Canada’s first rare earth refinery (we reported).
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