REalloys and U.S. Army Execute Term Sheet for Heavy Rare Earth Processing Facility at Tooele Army Depot
Key Highlights
- ➤REalloys and Army sign non-binding term sheet for Tooele rare earth facility
- ➤Proposed facility spans approximately 200 acres at Tooele Army Depot
- ➤Initial lease term 50 years, with one 25-year renewal option
- ➤Facility would process dysprosium and terbium for defense systems
- ➤Definitive lease requires financing, environmental reviews, permits and Army approval
Expert Statements
Leonard Sternheim, Chief Executive Officer of REalloys
“Agreeing to this term sheet with the U.S. Army is an important step for our Tooele project as we work toward a long-term lease. Dysprosium and terbium are essential to the magnets in America's most advanced defense systems, and almost all of that processing still happens overseas. We believe this framework would provide long-duration site access on a U.S. defense installation and a structure to facilitate continued cooperation between REalloys and the Army. We look forward to working with the Army toward a definitive lease.”
Jack Keane, Director of REalloys and General, U.S. Army, Ret.
“For too long, the United States has depended on adversaries and others for the materials inside its most advanced defense technology and China has made clear it is prepared to use that dependence as leverage. Dysprosium and terbium sit at the center of that vulnerability. Our ability to deter conflict, and to prevail if deterrence fails, depends on producing munitions and weapons systems at scale, and that requires supply chains we control. This term sheet is an important step toward bringing heavy rare earth processing onto a U.S. defense installation.”
Jeff Waksman, Principal Deputy Assistant Secretary of the Army for Installations, Energy and Environment
“Rare earth processing is a known national security vulnerability, with China specifically holding a near 100% global monopoly on dysprosium and terbium. Leveraging our legal authorities and land, the U.S. Army is able to help nurture and expedite the growth of critical minerals industrial base which equips and sustains America's Soldiers without putting any taxpayer dollars at risk.”
EUCLID, Ohio, Nov. 03, 2026 (GLOBE NEWSWIRE) -- REalloys Inc. (NASDAQ: ALOY) ("REalloys" or the "Company"), a U.S.-based rare earth minerals and materials company building a vertically integrated North American “mine-to-magnet” supply chain, today announced that a subsidiary of REalloys and the U.S. Department of the Army ("Army") have executed a non-binding term sheet setting out the principal commercial terms for a potential Enhanced Use Lease ("EUL") to develop a heavy rare earth processing facility at Tooele Army Depot in Utah. Other than certain customary provisions, the term sheet is non-binding, and there can be no assurance that a definitive EUL will be executed.
The term sheet follows the Army's June 25, 2026 selection of REalloys as the solicitation awardee enabling exclusive negotiations under its Strategic Capital Initiatives. It contemplates development of the facility on approximately 200 acres at Tooele Army Depot. The facility would process and refine target critical minerals, including dysprosium ("Dy") and terbium ("Tb"), the heavy rare earth elements used in, among other things, high-temperature permanent magnets for precision-guided munitions, electric motors, sonar, radar and other defense systems.
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