US rare earth firm outlines strategy to build China-free supply chain for minerals

US-based rare earth firm REalloys believes it has a road map to build a North American supply chain for critical minerals that bypasses China, working with Canadian and Japanese partners – a potential first, though not without risks and challenges.

REalloys operates a downstream facility for permanent magnets and critical metals in Ohio. On Monday, it announced a partnership with Canada’s Saskatchewan Research Council, the province’s technology innovation unit. The firm will invest US$21 million in a processing plant for heavy rare earths, the latest in a string of private sector initiatives aimed at breaking China’s grip on the supply chain.

“Our primary focus is the ability to process materials from a variety of different inputs, and so to somewhat become less tied to any single mine’s production, but [REalloys also] rather [wants to] focus on refining aspects, which is largely not done in North America today,” said Tim Johnston, the firm’s strategic adviser.

In response to this near-monopoly, Washington has stepped up its global hunt for critical minerals, with US President Donald Trump signing a slew of deals during his October trip to Asia. That included a memorandum of understanding with Malaysia, which already has processing capacity.