REalloys Inc. (NASDAQ: ALOY), a U.S.-based mine-to-magnet rare earth company, has announced a non-binding Memorandum of Understanding (MOU) with U.S. Critical Materials Corp. (USCM), owner of the Sheep Creek rare earth project in Montana. The agreement would secure up to 10% offtake from Sheep Creek, described as the highest-grade rare earth deposit in the United States, to feed domestically sourced heavy rare earth material directly into REalloys' midstream and downstream operations for U.S. strategic defense stockpiles.
Sheep Creek averages approximately 9% total rare earth oxides (TREO), or 89,932 ppm, across a 7,277.5-acre land package with over 60 identified carbonatite formations, independently verified by Activation Laboratories and Idaho National Laboratory. The deposit contains confirmed dysprosium and terbium, the two most strategically sensitive heavy rare earth elements used in high-performance permanent magnets for F-35 fighter aircraft, missile guidance systems, radar platforms, and other advanced U.S. defense platforms. At 10% offtake, REalloys gains a potentially material domestic feedstock source to complement its diversified global allied-nation supply network, adding a critical domestic anchor as procurement restrictions on Chinese-sourced rare earths take full effect in 2027.
The MOU also establishes a framework for potential strategic equity investment and equity exchange, joint pursuit of government financing, and coordinated government relations. According to the companies, this presents Congress and the executive branch with a unified, fully domestic heavy rare earth supply chain narrative built on zero Chinese involvement at any stage. Lipi Sternheim, CEO of REalloys, stated that the company is partnering with high-grade developers across allied nations to build a diversified supply network designed to counteract Chinese dominance.
Harvey Kaye, Executive Chairman of U.S. Critical Materials Corp., emphasized that Sheep Creek changes the equation for U.S. critical mineral sovereignty. He noted that the deposit is the highest-grade rare earth deposit in the country, fully domestic, and now connected to the only midstream and metallization platform in the Western Hemisphere capable of converting that resource into defense-ready metals. The parties will advance metallurgical test work, optimize heavy rare earth processing flowsheets, and negotiate a definitive long-term offtake agreement, with reasonable efforts to execute within one year.
REalloys is advancing a fully integrated North American mine-to-magnet supply chain encompassing upstream resource development, midstream processing, and downstream manufacturing. Its upstream foundation includes the Hoidas Lake rare-earth asset in Saskatchewan and a diversified network of allied feedstock and recycling partners. Together with the Saskatchewan Research Council, REalloys is building a platform to scale North American heavy rare earth midstream separation, refining, and metallization capabilities. Those refined materials feed into REalloys' downstream manufacturing operations in Euclid, Ohio, where the company produces advanced heavy rare earth metals, alloys, and magnet components for defense, clean-energy, and high-performance industrial applications. The Ohio facility serves federal logistics and procurement agencies supporting the Department of Defense, the Department of Energy, and NASA, in addition to the broader Defense Industrial Base.
U.S. Critical Materials Corp. is a private exploration and technology company focused on developing rare earth elements and critical minerals to support U.S. national security and supply chain independence. The company owns the Sheep Creek Project and is advancing it through collaborations with Idaho National Laboratory and strategic partners. The project is considered one of the highest-grade rare earth deposits in the United States, also containing gallium and other strategic minerals.
This partnership underscores the strategic importance of securing domestic rare earth supply chains, particularly for heavy rare earths critical to defense applications. With the 2027 deadline for Chinese-sourced rare earth restrictions approaching, the MOU positions both companies to leverage government financing programs such as DOE Title XVII loan guarantees, DPA Title III awards, and EXIM Bank financing to accelerate development. For more information, visit REalloys.com and USCriticalMaterials.com.
