The U.S. Defense Logistics Agency (DLA) awarded a contract to Terves LLC, now controlled by REalloys, to scale domestic production of critical rare earths, specifically samarium (Sm) and gadolinium (Gd).
Until now, the United States has been entirely dependent on foreign sources for the acquisition and separation of these metals. Both elements are fundamental in advanced defense systems, such as samarium-cobalt permanent magnets, precision optics, aerospace technologies, nuclear control rods, and next-generation radar systems.
A Strategic Contract to Strengthen National Security
The contract, which falls under DLA212-004, will enable REalloys to scale its direct metallothermic processing platform, distinguished by its low-temperature operation and zero waste generation. The technology, in addition to being more efficient and sustainable than traditional methods, allows for the production of high-purity metals without relying on costly solvent extraction plants.
As part of the agreement, REalloys will design a modular plant with a 300-ton annual capacity that can be quickly replicated across the country, addressing both military and industrial demand.
REalloys Consolidates as National Leader
REalloys Inc. is listed on NASDAQ under the ticker ALOY and maintains vertically integrated operations across the rare earth value chain. Its subsidiary PMT Critical Metals acquired the rare earth assets of Terves LLC and Powdermet Inc., consolidating proprietary technology that now drives the resurgence of these capabilities on U.S. soil.
The company manages upstream resources such as the Hoidas Lake project in Canada, in collaboration with strategic allies and research centers, before processing and refining materials at its Ohio plant. From there, REalloys supplies entities such as the Department of Defense, NASA, and the Department of Energy.
Zero-Waste Technology and Modularity
One of the most notable features of the REalloys platform is its zero-waste processing approach. This modular, semi-continuous architecture allows for the direct transformation of rare earth mixtures like samarium-europium-gadolinium (SEG) into high-purity metal, including advanced alloys such as gadolinium-cobalt.
The company also filed a provisional patent supporting its exclusive metallization technology, designed to reduce production costs by up to 50%, shorten implementation times, and radically decrease capital investment.
Industrial Autonomy for the Next Generation of Defense
With this contract, REalloys positions itself as a key player in rebuilding the U.S. defense industrial base. The ability to domestically produce strategic metals like Sm and Gd strengthens the country’s aerospace, energy, and military independence against geopolitical tensions and foreign supply chains.
Materials that were once invisible to the general public, but indispensable for U.S. technological superiority, are now beginning to be manufactured domestically.
Source: REalloys