Metals Co. Advances Rare Earth Processing Plans as Pentagon Hardens US Defense Infrastructure

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1. Ownership and Share Structure Information

Ownership percentages, named holders, share count, market capitalization, and the 52-week range for REalloys were compiled from company public filings and investor materials, exchange notices, insider-trade reports (SEDI / equivalent), and third-party data providers. Figures are as of 2026-11-09 unless a source was dated earlier. Pie slices are normalized to 100% of basic shares outstanding; retail is the residual after disclosed institutions, management, insiders, and strategic holders. Warrant terms are current outstanding series only. Restructures are historical consolidations, splits, and symbol or name changes. Insider buying and selling covers open-market trades from the prior six months through 2026-11-09 and excludes option exercises. These are public-source estimates and can differ from a later official register.

REalloys Inc. (ALOY:NASDAQ), a U.S.-based rare earth metals and materials company pursuing a mine-to-magnet strategy, signed a non-binding term sheet with the U.S. Department of the Army on November 3, 2026, outlining a potential long-term lease for a heavy rare earth processing facility at Tooele Army Depot in Utah. The proposed project comes as the Pentagon advances its FORTRESS America initiative, which is intended to protect military installations and critical supply chains from attacks and infrastructure disruptions.

Key Investor Takeaways

A New Kind of National Security Threat

Retired U.S. Navy SEAL Mike Sarraille recently warned that future adversaries may not need to land troops on American soil to disrupt the country. In an interview published by Yahoo!Finance, Sarraille identified data centers, power generation, and financial systems as potential targets for cyber and electronic attacks capable of causing nationwide blackouts. He also cautioned that the oceans no longer provide the protection they once did.

The Pentagon is developing a response to these types of threats through FORTRESS America, a program intended to maintain military readiness even if civilian infrastructure or supply chains are disrupted. Defense Secretary Pete Hegseth announced FORTRESS America on September 30, 2026, and the initiative's five pillars include energy independence, supply chain and defense industrial base resilience, strategic defense reserves, installation hardening and cyber resilience, and space and spectrum resilience, according to DefenseScoop.

The initiative calls for major military installations to generate power independently of civilian grids. Assistant Secretary of Defense Dale Marks told Breaking Defense that the goal is to power bases for 30, 60, or even 90 days without outside electricity. Marks also said the Pentagon is exploring public-private partnerships to help finance the effort and is prioritizing installations rather than setting a universal completion date.

Dysprosium and terbium are heavy rare earth elements used in high-temperature permanent magnets for precision-guided munitions, electric motors, sonar, radar and other defense systems, according to REalloys' November 3 announcement.

In that announcement, Dr. Jeff Waksman, principal deputy assistant secretary of the Army for Installations, Energy, and Environment, said China holds a near-100% global monopoly on dysprosium and terbium processing. This concentration creates a supply-chain vulnerability for defense manufacturers seeking alternative sources of these materials.

REalloys' Proposed Tooele Facility

REalloys would develop a heavy rare earth processing facility on approximately 200 acres at Tooele Army Depot. The proposed Enhanced Use Lease includes an initial 50-year term and one possible 25-year extension. The Army would retain ownership of the land, while REalloys would finance, build, operate, and ultimately decommission the facility. The Army would receive a right of first offer on the facility's output, although it would not be obligated to purchase any material. The arrangement would establish potential domestic processing capacity for dysprosium and terbium on an existing defense installation.

A recent Q2 financial results report points out that the proposed project follows REalloys' work with Canada's Saskatchewan Research Council (SRC). REalloys has secured rights to approximately 80% of the expanded output from SRC's rare earth processing facility. According to the company's August 2026 results, the upgraded facility is expected to produce approximately 30 tonnes of dysprosium oxide and 15 tonnes of terbium oxide annually, with commercial intake expected to begin in Q3 2027. 

Clear Street reiterated a "Buy" rating and US$35 price target in its August 17, 2026, research report.

REalloys is also advancing a separate Heavy Rare Earth Metallization Facility. The Q2 financial release stated that engineering and equipment procurement are underway, with commissioning targeted for Q1 2028 and initial operations expected in the first half of that year. The facility is targeting annual processing capacity of approximately 50 tonnes of combined dysprosium and terbium oxide feedstock.

The Army's agreement with REalloys is part of a broader effort to use military land for critical minerals infrastructure. On October 7, Titan Mining Corp. (TI:TSX; TII:NYSEAMERICAN) announced a term sheet with the Army for a proposed graphite processing facility on approximately 97 acres at Anniston Army Depot in Alabama. The proposed facility would operate under an Enhanced Use Lease (EUL), a U.S. Army framework that allows private companies to develop and operate commercial facilities on underutilized military property in exchange for rent or other benefits to the Army.

Analysts' Opinions on REalloys vary.

Analyst opinions on REalloys vary. On July 22, 2026, Needham's Carter Goman maintained a "Buy" rating but lowered the price target to US$16 from US$19, according to MarketBeat.

Clear Street reiterated a "Buy" rating and US$35 price target in its August 17, 2026, research report. Analyst Tim Moore wrote, "We believe ALOY can become North America's first processor of heavy rare earths, followed by the first rare earth magnet maker in North America. The company is progressing well with the SRC facility in Canada, which should begin generating revenue next year and ramp up utilization quickly."

Moore forecasts that REalloys will reach 50% utilization of its Phase 1 production capacity by late 2027, increasing to full utilization by late 2028. He also expects the company to expand heavy rare earth processing capacity fivefold through Phase 2 in 2029, when magnet production is expected to begin generating revenue.

Risks and Upcoming Catalysts

The Tooele term sheet remains non-binding. A definitive lease is subject to agreement on rent, Army approval of REalloys' development plan, environmental reviews, permitting, foreign ownership and control review, project financing, and other conditions. Either party may terminate the term sheet if the conditions are not satisfied or waived within 18 months.

The political outlook also adds uncertainty. Following Democrats' gains in the November 3 midterm elections, incoming congressional majorities could increase scrutiny of federal mining investments and critical minerals agreements, according to S&P Global. The publication also noted that domestic critical minerals policy continues to receive bipartisan support.

A separate U.S. defense procurement restriction takes effect January 1, 2027, under Section 225.7018-2 of the Defense Federal Acquisition Regulation Supplement. The restriction covers specified materials, including neodymium-iron-boron and samarium-cobalt magnets, tungsten and tantalum, if they are mined, refined, separated, melted, or produced in China, Russia, Iran, or North Korea. It applies to Department of Defense procurement contracts and subcontracts, rather than banning all rare earth elements or their use across the broader U.S. economy. The January 2027 deadline marks a significant milestone in efforts to establish alternative supply chains for materials used in U.S. defense applications.

Common Questions from Investors

What is REalloys' proposed agreement with the US Army?

REalloys signed a non-binding term sheet outlining a potential Enhanced Use Lease for approximately 200 acres at Tooele Army Depot in Utah. The proposed facility would process heavy rare earth elements, including dysprosium and terbium, for use in permanent magnets and defense applications.

What is the FORTRESS America program?

FORTRESS America is a Pentagon initiative intended to improve the resilience of U.S. military installations and defense supply chains. Its five pillars include energy independence, supply chain and defense industrial base resilience, strategic defense reserves, installation hardening and cyber resilience, and space and spectrum resilience.

Why are dysprosium and terbium important to the defense industry?

Dysprosium and terbium are used in high-temperature permanent magnets that can operate in demanding conditions. These magnets are used in defense applications such as precision-guided munitions, radar and sonar, as well as electric motors and other technologies.

When could REalloys' rare earth processing operations begin?

The company's SRC-related processing expansion is targeting commercial intake in the third quarter of 2027. Separately, REalloys' heavy rare earth metallization facility is targeting commissioning in Q1 2028, with initial operations expected in the first half of that year. The proposed Tooele facility remains subject to further agreements and development requirements.