On March 2, REalloys said it had been granted a contract by the U.S. Department of Defense, valued at up to $1.7 million, to support the design of a processing plant that would produce metals used in the manufacture of magnets for weapons systems and electronic devices.
The Ohio-headquartered company received the award through the Defense Logistics Agency (DLA). Under the terms of the contract, REalloys is expected to develop detailed engineering schematics for a modular version of the proposed facility. The program is structured in two phases and spans 24 months.
REalloys plans for the facility to be capable of converting as much as 300 metric tons per year of the heavy rare earths samarium and gadolinium into metal form. If realized, that capacity would position the plant as one of the larger U.S. domestic sources for those specific metals. The company noted that rare earths need to be processed into metals before they can be used in magnet manufacture.
The DLA, which procured the contract, is the Defense Department agency responsible for buying a range of supplies and materials for the U.S. military. The award acts as an initial validation of REalloys' processing technology from the agency, according to the company.
REalloys recently began trading on the Nasdaq last week following its merger with Blackboxstocks. Alongside the design program, the company is advancing a rare earths mine in Saskatchewan and has a processing agreement in place with the Saskatchewan Research Council, the technology innovation arm of that Canadian province.
In related political developments noted by the company, President Donald Trump has ordered the Department of Defense to be renamed the Department of War, a change that would require action by Congress.
The contract and design work focus on converting samarium and gadolinium into metal form at scale and producing a modular blueprint for the facility. The award from the DLA covers the preliminary engineering work rather than plant construction or guaranteed production volumes.
Contextual notes
The award is explicitly a design and engineering contract intended to deliver schematics for a modular processing plant over two phases and 24 months. The company has parallel upstream and processing arrangements in Saskatchewan, and the DLA procurement reflects early government engagement with REalloys' technology.