REalloys’ Saskatchewan rare earths operation marks a turning point for North America’s critical minerals supply chain, establishing the continent’s first fully integrated heavy rare earth refinery with commercial production slated for early 2027.
REalloys and Saskatchewan: A Strategic Alliance
In December 2025, the Saskatchewan Research Council (SRC) and REalys Inc. signed a suite of historic contracts that cement Saskatchewan’s role as a global hub for critical minerals Newswire Canadian Mining Journal. The partnership is anchored by a five-year offtake agreement under which REalloys will purchase the majority of annual production of Neodymium-Praseodymium (NdPr) metals, as well as Dysprosium (Dy) and Terbium (Tb) oxides from SRC’s Rare Earth Processing Facility in Saskatoon Canadian Mining Journal.
This facility, equipped with more than 400 solvent extraction cells, represents North America’s first fully integrated rare earth processing and metals plant, covering monazite processing, separation, and smelting Newswire. Commercial-scale output is expected by early 2027, with Saskatchewan positioned as a linchpin in reducing reliance on Chinese supply chains MINING.COM.
Investment and Expansion
REalloys, a U.S.-based startup formed in 2023, has committed $21 million to expand production capacity at the SRC facility MINING.COM KITCO. In return, it secured long-term rights to 80% of annual output, ensuring a steady supply of heavy rare earths for industries such as wind power, defense, and advanced electronics MINING.COM.
The company also signed agreements to source ore from Greenland, diversifying feedstock and reinforcing its commitment to allied supply chains MINING.COM. This expansion directly addresses bottlenecks in Western magnet manufacturing, where dysprosium and terbium are critical for high-performance permanent magnets The Globe and Mail.
Strategic Implications
The deal has been described as a “rare earths tie-up with strategic implications” by Reuters, highlighting its importance amid tightening U.S. sourcing laws The Globe and Mail. By meeting Title 50 defense-sourcing requirements under U.S. Code, the partnership ensures zero Chinese or non-allied nexus in supply The Globe and Mail GlobeNewswire.
For Saskatchewan, the agreement delivers strong commercial returns while reinforcing its reputation as a global critical minerals hub Government of Saskatchewan kindersleysocial.ca. For REalloys, it secures a first-mover advantage in North American heavy rare earth refining, a sector previously dominated by Asia.
Looking Ahead
Commercial production is expected to begin in early 2027, with REalloys and SRC positioned to deliver the first fully funded and permitted heavy rare earth refining pathway in North America The Globe and Mail prismmediawire.com. This landmark operation not only strengthens allied supply chains but also signals a new era of resource independence for Canada and the United States.
Sources: Newswire Canadian Mining Journal MINING.COM The Globe and Mail The Globe and Mail Government of Saskatchewan KITCO kindersleysocial.ca prismmediawire.com GlobeNewswire
