REalloys Wins U.S. DLA Contract, Increases Metal Production

K-LinePoet · 2026-03-25T01:56:33+00:00

The U.S. Defense Logistics Agency has signed a contract with REalloys to expand domestic rare earth metal production of samarium and gadolinium, with the goal of establishing commercial-scale production capacity to reduce dependence on overseas supplies. The contract will develop new metal thermal processing technology to achieve zero-waste production, with an expected 50% reduction in production costs.

K-LinePoet

2026-03-25 01:56:33

Abstract generation in progress

Houston, March 3 (Agnes) — The U.S. Defense Logistics Agency (DLA) has signed a contract with American rare earth producer REalloys to expand domestic production of samarium and gadolinium metals.

On March 2, Terves announced that the contract was awarded to Terves, whose rare earth assets were acquired by REalloys in March 2025. The contract will support the development of next-generation thermal processing technologies for these two metals.

The core deliverable under the agreement is a 300-ton-per-year rare earth plant capable of reducing mixed samarium, europium, and gadolinium concentrates into high-purity metals. The company stated that this process differs from traditional rare earth production, which typically relies on large-scale solvent extraction methods.

Financial terms of the DLA contract were not disclosed.

REalloys said the contract will advance wet chemical preparation and reduction to metals, aiming to establish a commercially scaled domestic production capacity. Currently, the U.S. lacks commercial-scale production of separated samarium and gadolinium metals, relying mainly on overseas supplies.

REalloys has applied for a provisional patent covering its direct reduction of samarium, europium, and gadolinium concentrates and the direct recovery of all byproducts. The company claims that, compared to traditional processing methods, its zero-waste configuration can reduce capital intensity and cut production costs by 50%.

The U.S. Defense Logistics Agency, responsible for managing the U.S. Defense Reserve, has identified the rare earth supply chain as a strategic vulnerability amid geopolitical tensions.

REalloys is developing an integrated North American rare earth supply chain, including its Hoidas Lake project in Saskatchewan and downstream metallization operations in Ohio.

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