REalloys and JS Link sign non-binding LOI for rare earth magnet venture

REalloys Inc. (NASDAQ: ALOY) and JS Link Inc. (KOSDAQ: 127120) have signed a non-binding letter of intent to evaluate a strategic partnership aimed at developing an integrated North American rare earth magnet manufacturing platform, according to a press release.

Under the agreement, the companies intend to explore combining REalloys' North American rare earth supply chain, processing, and heavy rare earth metallization capabilities with JS Link's permanent magnet manufacturing technology and global manufacturing operations in South Korea, Malaysia, and the United States.

The parties say they intend to evaluate the development of a non-Chinese rare earth supply chain spanning feedstock, separation, metallization, and permanent magnet manufacturing. The companies also plan to explore U.S. government financing programs, strategic industrial partnerships, and potential public capital markets initiatives.

REalloys CEO Lipi Sternheim said in a statement: "We believe the logical next step is to extend that platform into permanent magnet manufacturing. JS Link has built an impressive magnet manufacturing business with ambitious global expansion plans, and we believe our complementary capabilities create a compelling opportunity."

JS Link CEO Jun Young Lee said the partnership "has the potential to accelerate development of resilient permanent magnet supply chains outside China while creating significant long-term value for both companies and their shareholders."

REalloys noted recent milestones including a partnership with the U.S. Army under the Army Strategic Capital Initiatives program, qualification efforts for defense-grade heavy rare earth materials ahead of January 1, 2027 DFARS sourcing requirements, and the completion of a $100 million private placement.

The letter of intent is non-binding and serves as a framework for due diligence and negotiation of potential definitive agreements. The companies cautioned that there is no assurance that definitive agreements will be reached or that any transaction will be completed.

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