This Ohio Plant Serves as Trump’s Hidden Advantage in the Battle Over Rare Earths

The Strategic Importance of Rare Earth Elements

Rare earth elements have become central to the global contest for technological and military dominance. These materials are essential for powering advanced defense equipment, high-tech manufacturing, and the latest energy solutions. REalloys (NASDAQ: ALOY) is at the forefront of this sector in the United States, specializing in transforming heavy rare earths into high-grade magnets and alloys.

REalloys: Advancing Domestic Rare Earth Processing

While many Western firms are still exploring or planning rare earth projects, REalloys operates a fully functional facility in Euclid, Ohio. Here, heavy rare earth materials are refined and converted into specialized alloys vital for defense and advanced manufacturing. By processing these materials domestically, REalloys bypasses the need for overseas refining, reducing reliance on foreign supply chains and mitigating potential leverage from China.

Strengthening North American Supply Chains

Key components for missiles, aircraft, electric vehicles, satellites, and critical infrastructure can now be produced within North America. REalloys plays a crucial role by bridging the gap between separated rare earth oxides and the metal inputs needed for magnet production. The company is already delivering qualified materials under U.S. Department of Defense contracts, aligning with increasingly strict domestic sourcing requirements.

The Role of Rare Earth Magnets

Rare earth magnets are the final, high-performance products that enable precision-guided weapons, advanced aircraft, electric vehicle motors, satellites, and essential industrial systems.

Supporting Leading U.S. Manufacturers

Major American companies, such as Tesla (NASDAQ: TSLA) and NVIDIA (NASDAQ: NVDA), rely on high-performance rare earth magnets for efficient operation of motors, cooling systems, and precision components in demanding environments.

REalloys’ Critical Position in the Supply Chain

REalloys is positioned at a pivotal stage, converting separated oxides into the specialized metals and alloys required by magnet manufacturers. As domestic sourcing regulations tighten, the company is already supplying qualified materials under Department of Defense contracts, making it a key operational link in the U.S. rare earth supply network.

Meeting Urgent Defense Needs

The U.S. military is actively collaborating with REalloys to secure rare earth metals and alloys for ongoing defense programs. REalloys produces these materials domestically to precise specifications already integrated into active supply chains. When procurement rules change in 2027 to exclude Chinese-origin materials, REalloys’ products will remain compliant without modification. Currently, no other supplier in North America matches REalloys’ capability to produce qualified heavy rare earth metals and alloys at this standard.

The Essential Role of Heavy Rare Earths

Heavy rare earths are critical for ensuring the reliability of modern missile and aerospace systems under extreme conditions. Elements like dysprosium and terbium are incorporated into magnet alloys to maintain performance at high temperatures and under intense vibration, making them indispensable for precision-guided weapons and missile defense systems.

REalloys’ Unique Position in the Market

Most U.S. rare earth companies remain focused on mining, oxide separation, or pilot projects. In contrast, REalloys operates at the advanced processing stage, where real supply chains are established. The company has secured a long-term commercial agreement with the Saskatchewan Research Council (SRC), granting access to 80% of the SRC facility’s upgraded annual output. This expansion, expected to be operational by early 2027, will make REalloys the only commercial-scale North American supplier of dysprosium and terbium oxides.

To support this growth, REalloys is investing approximately US$21 million to increase heavy rare earth processing capacity by about 300% and boost light rare earth (NdPr) output by 50%. The targeted annual production includes up to 30 tonnes of dysprosium oxide, 15 tonnes of terbium oxide, and 400 tonnes of high-purity NdPr metal, with plans to scale NdPr output to 600 tonnes after the expansion. Initial production is anticipated early next year.

Building a Robust Feedstock Network

REalloys has established supply agreements for feedstock from Kazakhstan, Brazil, and Greenland.

• In Kazakhstan, a non-binding long-term deal with AltynGroup secures rare earth feedstock, including both light and heavy elements, for direct processing in the U.S.
• In Brazil, a memorandum with St George Mining could provide up to 40% of the Araxá project’s rare earth output, pending final terms.
• From Greenland, a 10-year agreement (currently at the letter of intent stage) would supply up to 15% of annual rare earth concentrate from the Tanbreez project.

All these supply streams are ultimately intended to support U.S. Department of Defense needs.

The Euclid, Ohio Processing Center

REalloys’ facility in Euclid, Ohio, is designed to convert separated rare earth oxides into metals under controlled conditions, then alloy them for magnet production. This process accommodates both light and heavy rare earths, including dysprosium and terbium, producing pre-alloyed metals with tightly controlled chemistry. The Euclid plant serves as the critical link between oxide separation and finished magnet assembly, providing production-ready materials for defense and industrial applications.

The final products are distributed through commercial channels and directly support Department of Defense programs.

Restoring U.S. Rare Earth Capabilities

For the first time in decades, the U.S. is working to rebuild its rare earth processing infrastructure, even as China tightens its grip on processed materials essential for defense and industry.

The main challenge lies in the conversion of rare earth oxides into finished metals at scale—a capability that disappeared from Western supply chains years ago. This bottleneck affects not only defense but also major technology and industrial sectors, including electric vehicles and AI infrastructure.

The Center for Strategic and International Studies (CSIS) identifies rare earth metallization and alloying as the most difficult and experience-dependent step to restore outside China. Achieving consistent, magnet-grade quality requires years of operational expertise, not just investment. While mining can be accelerated, metallization cannot.

REalloys is addressing this challenge head-on. While most Western companies are limited to oxide production or pilot projects, the Euclid facility is actively converting oxides into metals and alloys that meet strict buyer specifications. This operational capability is rare, as the U.S. abandoned it a generation ago, and rebuilding it takes time that cannot be shortened by funding alone. The Euclid plant now defines the limits of what America’s rare earth resurgence—and its defense and industrial strength—can achieve.

By Josh Owens