REalloys Inc. (NASDAQ: ALOY) announced the successful demonstration of a hydrofluoric-acid-free process for producing rare earth fluorides from rare earth oxides. The company stated the innovation eliminates the use of hydrofluoric acid, which it describes as one of the most hazardous chemicals in rare earth processing.

Independent laboratory testing confirmed the process produced fluoride with an oxygen content of 0.34%, which meets industry requirements for metallization-grade rare earth fluoride feedstock that typically requires oxygen levels below 1%. The fluorides are used to produce rare earth metals including dysprosium, terbium, and neodymium for permanent magnets in defense and technology applications.

REalloys has filed patent applications covering the HF-free fluorination chemistry and process design. Chief Executive Officer Lipi Sternheim stated the breakthrough could reduce environmental burden, safety risks, and costs associated with rare earth processing while enabling cleaner production in the United States.

The company noted that hydrofluoric acid requires specialized containment systems and extensive safety measures that increase operating costs and create environmental risks. China currently dominates midstream rare earth processing steps including fluorination and metallization for heavy rare earth metals used in defense technologies.

REalloys operates facilities in Saskatchewan and Ohio, serving federal agencies including the Department of Defense, Department of Energy, and NASA. The company produces rare earth metals, alloys and magnet components for defense, clean energy, and industrial applications.