REalloys Inc. (NASDAQ: ALOY) announced it received a memorandum from the Department of War regarding domestic heavy rare earth element supply chains ahead of a January 2027 prohibition on Chinese-origin rare earth materials.

The memorandum identifies Dysprosium and Terbium as critical heavy rare earth elements, according to the company's statement. REalloys noted the memorandum is not a technical endorsement of the company or its partners.

The Ohio-based company operates what it describes as the only heavy rare earth metallization platform in North America. REalloys is building what it calls the largest heavy rare earth metallization facility outside of China, designed to produce defense-grade dysprosium and terbium metal.

The company has secured a long-term offtake agreement for 80% of output from the Saskatchewan Research Council's commercial rare earth processing facility. REalloys also reported developing a patent-pending hydrofluoric-acid-free fluorination process.

REalloys is advancing through the Defense Industrial Base Consortium's qualification pathway to deliver materials to the Department of War, Defense Logistics Agency, and Defense Industrial Base before the 2027 Chinese-sourcing prohibition takes effect.

"The Department of War is correctly prioritizing the development of domestic HREE processing capacity," said General Jack Keane (Ret.), a REalloys board director and former Vice Chief of Staff of the U.S. Army.

The company's integrated operations include its Hoidas Lake rare-earth asset in Saskatchewan and manufacturing operations in Euclid, Ohio, where it produces heavy rare earth metals and components for defense and industrial applications.