U.S. Army signs term sheet for rare‑earth plant at Utah depot
The U.S. Army has entered a non‑binding agreement with REalloys to locate a commercial rare‑earth processing facility on a 200‑acre parcel at Tooele Army Depot in Utah. The plant will focus on extracting dysprosium and terbium, metals essential for magnets in F‑35 jets, Tomahawk missiles and Virginia‑class submarines. The lease runs for an initial 50 years with an option to extend another 25 years, and the Army will receive a right of first offer on output, though no purchase commitment is yet made.
Key facts
- China currently provides almost all global production of dysprosium and terbium, and Pentagon rules will bar Chinese sources from 1 Jan 2027.
- REalloys, together with the Saskatchewan Research Council, is building a large rare‑earth facility outside China, expecting first metal in early 2027.
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Why it matters
It aims to cut U.S. defense reliance on Chinese rare‑earth supplies.
What changed
First published from OilPrice.com