REalloys secures Appalachian rare earth feedstock ahead of Pentagon deadline

REalloys (NASDAQ: ALOY) has entered into a letter of intent with Patriot Exploration & Mining to secure priority access to up to 30% of production from a 2-billion-ton rare earth resource network in the Appalachian Basin. The agreement grants the company preferential allocation rights to neodymium, praseodymium, dysprosium, and terbium from more than 150 tested sites stretching from Alabama to Pennsylvania. This development supports US defence supply chains ahead of a Pentagon deadline to ban Chinese-origin materials scheduled for 2027.

The deal complements REalloys’ existing supply agreements in Greenland, Brazil, Kazakhstan, and Canada, as well as its metallization facility in Ohio. The company has been assembling a raw material pipeline behind its growing processing and metallization platform, aiming to create a supply chain capable of taking rare earth material from feedstock through separation and alloy production without relying on Chinese processing.

This agreement follows REalloys’ recent announcement of a 15-year offtake agreement with Critical Metals Corp for 15% of Phase 1 production from the Tanbreez project in Greenland. The Tanbreez deposit is one of the largest known heavy rare earth deposits in the world, with Critical Metals estimating that roughly 27% of the deposit’s rare earth profile consists of heavy rare earths. REalloys secured rights to 15% of monthly production as well as priority access to dysprosium- and terbium-rich concentrate streams.

REalloys has also committed approximately $20.6 million to upgrades at the Saskatchewan Research Council facility in Canada, aiming to increase neodymium-praseodymium output by 25% and double dysprosium and terbium production. Target annual output at the facility now stands at approximately 525 tonnes of neodymium-praseodymium, 30 tonnes of dysprosium, and 15 tonnes of terbium. In exchange, REalloys secured exclusive preferred rights to as much as 80% of the facility’s expanded commercial output.

The broader industry context includes significant government support and competitor activity. The US Department of Energy awarded $67 million this week to a rare earth extraction project in Louisiana, while USA Rare Earth secured access to a proposed $1.6-billion federal financing package. Meanwhile, MP Materials Corp reported record first-quarter 2026 results, with neodymium-praseodymium oxide production up 63% year-on-year to 917 metric tons.