Domestic Supply Chain Push Takes Another Step
Rare earths developers REalloys (ALOY.O) and U.S. Critical Materials have signed a memorandum of understanding to build a fully domestic supply chain for key materials in the U.S. The agreement fits into Washington’s broader effort to reduce reliance on China for critical materials. It also comes as miners and processors race to secure domestic feedstock and processing capacity.
- REalloys will seek up to 10% offtake from Sheep Creek.
- The deposit is in Ravalli County, Montana.
- The focus is on heavy rare earth materials.
Why Sheep Creek Matters
The Sheep Creek deposit contains high concentrations of dysprosium and terbium, elements used in high-performance permanent magnets. Those magnets are used in systems tied to defense and advanced electronics, including F-35 fighter aircraft, missile guidance systems and radar platforms, according to the companies.
- Dysprosium and terbium are key inputs for strong permanent magnets.
- Those magnets support defense and industrial applications.
- The project is positioned as a domestic source with no Chinese involvement.
What The Companies Plan Next
The companies said they will advance test work to improve heavy rare earth processing. They also aim to finalize a long-term offtake deal within one year. That timeline gives investors a clear next checkpoint: whether the MoU turns into a binding commercial agreement and whether processing work can support a steady domestic supply chain.
- Test work will focus on improving processing.
- A long-term offtake deal is targeted within one year.
- The goal is a fully domestic supply chain.
WSA Take
This agreement adds another sign that U.S. rare earth supply chains are moving from policy goal to commercial planning. The Sheep Creek deposit gives the deal a concrete asset base, while the offtake framework points to a possible downstream role for REalloys. The key issue now is execution: test work, processing performance and whether the companies can convert the MoU into a durable supply arrangement. For the market, the story remains about domestic capacity and strategic materials security.
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