Why Trump Can't Afford to Lose The Rare Earth Race
REalloys is developing a vertically integrated rare earth supply chain in North America to support the defense and automotive sectors as federal restrictions on Chinese materials loom.
According to OilPrice.com, the North American company REalloys is currently establishing an end-to-end rare earth manufacturing platform to reduce reliance on Chinese exports. The project integrates every stage of production, including heavy rare earth feedstock, metallization, and the manufacturing of permanent magnets. This industrial push comes as engineers find that alternative materials and new motor designs often require decades of testing before they are ready for commercial or military use.
The U.S. Department of Defense is a primary driver of this demand, utilizing rare earth magnets in F-35 fighters, Tomahawk missiles, and radar systems. The Pentagon is currently facing a five-year timeline to replenish weapon inventories consumed in recent conflicts. Simultaneously, new regulations are set to prohibit the procurement of Chinese-origin rare earth magnets for specific defense systems, placing increased pressure on domestic suppliers to achieve commercial scale by 2027.
To secure its supply chain, REalloys has finalized several international agreements, including a 15-year offtake deal for feedstock from the Tanbreez Project in Greenland. The company also received a $1.7 million contract from the U.S. Defense Logistics Agency to design a modular metallization facility. Furthermore, the U.S. Army has entered exclusive negotiations with the firm to operate heavy rare earth processing facilities at the Tooele Army Depot in Utah.
The automotive industry faces similar supply risks, with major manufacturers like Ford and General Motors working to secure non-Chinese magnet sources. While Tesla has explored motors that eliminate rare earths entirely, the broader transition to such technologies remains slow. REalloys recently raised approximately $100 million from private investors to accelerate the construction of its integrated platform, aiming to bridge the gap between raw material extraction and finished industrial components.
Helena Marsh — Energy Markets Editor. Helena covers crude, refined products and the trading houses that move them, with a focus on price formation in the Mediterranean and Black Sea.
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