Business · Companies · 2 hrs ago
Army and REalloys outline plan for rare earths facility in Utah
The U.S. Army and REalloys agreed on proposed terms for a rare earth processing facility at Tooele Army Depot in Utah.
The nonbinding term sheet covers a site of about 200 acres and a proposed lease that could last up to 75 years.
The facility would process dysprosium and terbium, which are used in powerful magnets for weapons, radar, sonar and electric motors.
China controls almost all global processing of these metals, leaving U.S. defense manufacturers exposed to supply disruptions and export restrictions.
The Army could get first offer on production, but would not have to buy the materials.
The project is not yet approved: it still needs financing and regulatory approvals.
If completed, the facility could help provide a U.S.-based supply as federal sourcing restrictions for some rare earth magnets take effect from January 1, 2027.
The U.S. Army and REalloys have signed a non-binding term sheet for a proposed rare earth processing facility at Tooele Army Depot in Utah.
The facility could occupy about 200 acres and process dysprosium and terbium, metals used in defense systems and other technologies.
The proposed lease would begin with 50 years, with a possible 25-year extension, while the Army would retain ownership of the land.
The Army would have a right of first offer on the facility’s production but would not be required to buy it.
The plan remains subject to financing, regulatory approvals and a final lease, and is intended to help reduce reliance on Chinese supplies.
- Who
- The U.S. Army and REalloys Inc.
- What
- They signed a non-binding term sheet outlining a potential lease for a heavy rare earth processing facility.
- When
- Tuesday, November 3, 2026, according to the Fox Business article.
- Where
- Tooele Army Depot in Utah.
- Why
- To develop U.S. processing capacity for dysprosium and terbium and reduce reliance on Chinese supplies.
This story does not have two clearly opposing sides.
The Army selected REalloys for exclusive negotiations, according to OilPrice, and for its Strategic Capital Initiative, according to Fox Business.
The Army and REalloys executed a non-binding term sheet outlining proposed commercial terms for a potential lease.
The proposed lease and facility still require financing and regulatory approvals.
- Proposed site
- Tooele Army Depot, Utah
- Proposed footprint
- About 200 acres
- Target elements
- Dysprosium and terbium
- Proposed lease
- 50 years initially, with a possible 25-year extension
- Army access
- Right of first offer on production; no obligation to purchase
- Status
- Non-binding term sheet; final lease requires financing and regulatory approvals
2 sources
What people are saying
It's not necessarily so much that Utah is the most strategic location of all places, it's just a military base that suits us, it's got the few hundred acres we need
Once the cat's out of the bag, the U.S., the Western world out of China, has to – if they want to advance and live a good life – they have to come up with their own supply chains of these things so nobody can hold this leverage over them and decide when they're going to make their jets and when they're going to make their phones and when they aren't going to