Rare earth development company REalloys has entered into a memorandum of understanding with U.S. Critical Materials Corp. The agreement aims to create a fully localized critical materials supply chain within the United States, aligning with Washington's objective of reducing reliance on China.
Under the terms of the agreement, REalloys will secure the offtake for up to 10% of the production from the Sheep Creek rare earth deposit. This deposit, located in Ravalli County, Montana, is owned by U.S. Critical Materials Corp.
The United States is intensifying its efforts to decrease dependence on China for critical minerals, including through the implementation of stricter procurement regulations. This push is encouraging mining and processing companies to compete in establishing domestic rare earth supply chains.
The two companies stated that the Sheep Creek deposit is rich in elements such as dysprosium and terbium. These materials are essential for manufacturing high-performance permanent magnets used in F-35 fighter jets, missile guidance systems, and radar platforms.
Lipi Sternheim, Chief Executive Officer of REalloys, said, "We are identifying strategic assets that can integrate into our high-end midstream and downstream industrial ecosystem. This will strengthen supply chain security for protected and strategic sectors, with the entire process involving no Chinese participation."
REalloys and U.S. Critical Materials also indicated that they will advance testing work to improve the processing of heavy rare earth elements. The partners aim to finalize a long-term offtake agreement within one year.
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