US-based rare earth firm REalloys believes it has a road map to build a North American supply chain for critical minerals that bypasses China, working with Canadian and Japanese partners – a potential first, though not without risks and challenges.
The Ohio-based company expects to deliver rare earth products, including magnets, in early 2027, using a non-Chinese sourcing strategy that spans metal supply to procurement. In October, it received a letter of interest from the
US Export-Import Bank, the official credit agency of the federal government, for a loan worth up to US$200 million to finance processing and magnet facilities.
REalloys operates a downstream facility for permanent magnets and critical metals in Ohio. On Monday, it announced a partnership with Canada’s Saskatchewan Research Council, the province’s technology innovation unit. The firm will invest US$21 million in a processing plant for heavy rare earths, the latest in a string of private sector initiatives aimed at breaking China’s grip on the supply chain.
“Our primary focus is the ability to process materials from a variety of different inputs, and so to somewhat become less tied to any single mine’s production, but [REalloys also] rather [wants to] focus on refining aspects, which is largely not done in North America today,” said Tim Johnston, the firm’s strategic adviser.
Rare earths have become one of Beijing’s biggest levers in its trade war with the US, prompting a scramble to diversify supply chains and reduce reliance on China, which accounts for 88 per cent of the global market share in refined rare earth production and 90 per cent of the magnet supply, according to Morgan Stanley.
In response to this near-monopoly, Washington has stepped up its global hunt for critical minerals, with US President Donald Trump signing a slew of deals during his October trip to Asia. That included a memorandum of understanding with Malaysia, which already has processing capacity.