REalloys Inc. (NASDAQ: ALOY) announced plans to build what the company describes as the largest heavy rare earth metallization facility outside China, with operations expected to begin in the first half of 2027.

The facility will be constructed in Saskatoon in partnership with the Saskatchewan Research Council, with equipment later relocated to Ohio. REalloys will own 100% of the Heavy Rare Earth Metal Facility, which is expected to cost approximately $40 million.

The facility is projected to produce roughly 30 tonnes of dysprosium and 15 tonnes of terbium metal annually once fully operational in mid-to-late 2027. The company states the facility will comply with 2027 U.S. defense procurement standards that restrict sourcing from China, Russia, Iran and North Korea.

REalloys completed a $50 million financing round, which the company says fully funds the project buildout. The facility will integrate with REalloys' existing metallization operations in Euclid, Ohio.

The project builds on a December 2025 partnership between REalloys and Saskatchewan Research Council, under which REalloys will invest in expanded production capacity at SRC's Rare Earth Processing Facility in exchange for 80% of the facility's output.

"The establishment of heavy rare earth metal production on U.S. soil is a defining moment for North American industrial strategy," said Stephen duMont, Chairman of REalloys.

Mike Crabtree, President and CEO of Saskatchewan Research Council, stated the partnership "creates the Western hemisphere's first end-to-end rare earth metal capability."

The announcement comes as U.S. defense procurement restrictions on sourcing from non-allied nations are set to take effect in 2027 under defense procurement regulations.