U.S. Army selects REalloys to build rare earth processing facility at Tooele Army Depot

U.S. Army Selects REalloys for Historic Rare Earth Processing Facility

In a span of approximately six weeks, REalloys (NASDAQ: ALOY) has achieved a series of significant developments that mark a fundamental shift in the company's trajectory. Most notably, the U.S. Army selected REalloys to build and operate rare earth processing facilities on an American military base — the first time the Army has undertaken such an initiative.

In late June, the U.S. Army chose REalloys to enter exclusive contract negotiations for a long-term Enhanced Use Lease at the Tooele Army Depot in Utah. Under the arrangement, REalloys will design, finance, build, and operate heavy rare earth processing facilities directly on the military base. The deal is enacted through a direct execution of Executive Order 14241 and requires no taxpayer subsidies, with REalloys bearing the full project costs.

The Army specifically selected REalloys to process dysprosium and terbium — heavy rare earth elements essential to precision-guided munitions, electric motors, sonar, and other defense systems. By siting the facility on an active military depot, the Army is creating an embedded supplier relationship designed to operate for years, with initial operating capability targeted no later than 2028.

$130 Million War Chest Secured

Within days of the Tooele announcement, REalloys closed a $100 million private placement with institutional investors at $14.25 per share. Combined with a $50 million public offering completed earlier in March, the company now holds approximately $130 million in cash to execute its buildout.

This capital is sufficient to fund the Euclid facility expansion, support the SRC processing partnership in Saskatchewan, advance the Tooele project, and continue material testing and approval processes with defense customers — all without requiring near-term additional capital raises.

Russell 3000 Index Inclusion

REalloys was formally added to the Russell 3000 Index, effective June 29. This inclusion provides automatic exposure to institutional capital, as passive funds and ETFs that track the Russell buy shares by default. This broadens the shareholder base and increases visibility across the institutional landscape for a company that has been operating under the radar.

Feedstock Agreements Across Multiple Regions

REalloys has secured raw material supply from diverse sources, including:

• Appalachian Basin: A letter of intent with Patriot Exploration & Mining securing priority access to up to 30% of Patriot's rare earth production, estimated at more than 2 billion metric tonnes of rare earth-bearing material across over 150 tested sites.
• Wyoming: A non-binding MOU with Ramaco Resources for potential feedstock from the Brook Mine, along with scandium oxide supply for alloy metallization at the Euclid facility.
• Greenland: A long-term offtake agreement with the Tanbreez project securing 15% of Phase 1 output.

These agreements add to REalloys' existing feedstock arrangements in Kazakhstan and Brazil, its 100%-owned Hoidas Lake rare earth project in Saskatchewan, and its exclusive 80% offtake on production from the Saskatchewan Research Council's rare earth processing facility. The company has built a raw material and processing network spanning multiple continents and domestic regions, all free of Chinese dependency.

Strategic Partnership and Defense Qualification

On July 7, REalloys signed a non-binding strategic partnership with a leading Korean magnet manufacturer. The company also initiated qualification of defense-grade heavy rare earth materials ahead of a defense procurement deadline that takes effect on January 1, 2027.

A Changed Narrative

While most investors have viewed REalloys as a promising early-stage rare earth play, the developments over the past six weeks suggest the company has shifted from building its story to executing on it. With the January 1, 2027 defense procurement deadline approaching, the market has limited time to catch up gradually.