America’s $10 Trillion War Machine Still Runs on Chinese Rare Earths

Core Insights - The U.S. defense industry is facing a critical supply chain issue regarding rare earth materials, particularly in the production of F-35 fighters, which were temporarily halted due to the use of Chinese materials [1][2] - REalloys is positioning itself as a key player in the North American rare earth supply chain by converting rare-earth oxides into finished metals at its facility in Ohio, thereby reducing reliance on Chinese processing [4][7] Supply Chain Dynamics - The U.S. has historically depended on China for the conversion of rare earth oxides into usable metals, which has given Beijing significant pricing power and supply leverage [5][19] - REalloys has secured partnerships and agreements to ensure a steady supply of heavy rare earths, including a deal with the Saskatchewan Research Council and agreements in Greenland, Kazakhstan, and Brazil [3][11][12][13] Government Support and Policy Changes - The U.S. government is increasingly recognizing the national security implications of rare earth supply chains, leading to updated procurement rules that will prohibit the use of Chinese-origin materials in defense systems starting in 2027 [15][20] - Federal initiatives, including the Defense Production Act, are channeling capital into domestic rare earth processing and metallization efforts, with the Export-Import Bank of the United States offering up to $200 million in financing for REalloys [16][17] Production Capacity and Future Plans - REalloys plans to expand its processing capacity to approximately 3,000 tonnes per year of NdPr metal and 245 tonnes per year of heavy rare earth metals like dysprosium and terbium, which are critical for defense applications [10] - The company is utilizing advanced metallurgical processes to produce high-purity, defense-grade metals, thereby re-establishing a crucial part of the supply chain within North America [8][9]