Ramaco Resources Inc. (NASDAQ: METC, METCB) entered into a non-binding memorandum of understanding with REalloys Inc. (NASDAQ: ALOY) to establish a strategic relationship for domestic rare earth supply chain operations.

The agreement outlines plans for Ramaco to provide REalloys with Mixed Rare Earth Carbonate from its Wyoming exploration project. REalloys would process the material into rare earth oxides at its Saskatchewan Research Council facility. Additionally, Ramaco would supply scandium oxide from its Brook Mine refinery for processing at REalloys' Euclid, Ohio facility.

"Ramaco is proud to pursue a future partnership with REalloys to supply domestically sourced mixed rare earth carbonates and scandium oxide that could underpin a resilient, ex-China permanent magnet supply chain," said Randall Atkins, Chairman and CEO of Ramaco Resources.

The MOU represents an initial step toward finalizing an offtake agreement between the two companies. Both companies aim to complete due diligence before establishing final terms.

Ramaco operates metallurgical coal mining complexes in West Virginia and Virginia, along with exploration activities in Wyoming. The company's Brook Mine remains in the exploration stage, with no assurance of successful commercial development. REalloys is an Ohio-based rare earth company focused on separation and processing operations.

The agreement comes as companies seek to develop domestic alternatives to China-dependent rare earth supply chains for permanent magnet production used in various industrial applications.