REalloys Inc. (NASDAQ: ALOY) announced it has committed approximately $20.6 million to upgrade the Saskatchewan Research Council's rare earth processing facility in Saskatoon, Canada, according to a company statement.

The investment, part of commercial agreements signed in December 2025, aims to increase the facility's production capacity by 25% for Neodymium-Praseodymium metals and double output for Dysprosium and Terbium oxides. Target annual production capacity includes 525 tonnes of NdPr, 30 tonnes of Dy, and 15 tonnes of Tb.

In exchange for the investment, REalloys secured exclusive preferred supply rights to up to 80% of the facility's expanded output. The company also contracted SRC to design and build a Heavy Rare Earth Metallization Facility, with equipment expected to be relocated to REalloys' facility in Euclid, Ohio after commissioning.

Initial commercial production from SRC's facility remains scheduled for early 2027, with staged commissioning underway. REalloys' Heavy Rare Earth Metallization Facility is targeting Dy and Tb metal production by the fourth quarter of 2027.

The agreements are structured to comply with U.S. defense sourcing requirements, including prohibitions under 10 U.S.C. §4872 and DFARS 252.225-7052, which take effect in 2027. These regulations restrict Chinese-sourced materials in defense procurement.

REalloys raised $50 million through an underwritten public offering in March 2026. The company operates facilities serving federal agencies including the Department of Defense, Department of Energy, and NASA.

SRC is constructing what it describes as North America's first fully integrated commercial rare earth processing facility, with more than 400 employees and operations spanning multiple countries.