HOUSTON, March 3 (Argus) - The U.S. Defense Logistics Agency (DLA) has signed a contract with the U.S. rare earth producer Realloys to expand domestic production of samarium and gadolinium metals.
Terves Company stated on March 2 that the contract was awarded to Terves Company, whose rare earth assets were acquired by Realloys Company in March 2025. The contract will support the development of next-generation metal heat processing technologies for these two metals.
The core deliverable under the agreement is that a 300-ton-per-year rare earth plant will be able to reduce the mixed samarium europium gadolinium enriched material to high-purity metal. The company stated that this process is different from traditional rare earth production, which typically relies on large-scale solvent extraction methods.
The financial terms of the DLA contract have not been disclosed.
Realloys stated that the contract will advance the wet chemical preparation and reduction to metal operations, with the goal of establishing a commercial-scale domestic production capacity. Currently, there is no commercial separation of samarium and gadolinium metals in the United States, and it mainly relies on overseas supply.
Realloys has applied for a provisional patent covering its direct reduction of samarium europium gadolinium enriched material and direct recovery of all by-products. The company stated that its zero-waste configuration can reduce capital intensity and lower production costs by 50% compared to traditional processing methods.
The U.S. Defense Logistics Agency, which manages the U.S. defense reserves, has identified the rare earth supply chain as a strategic weakness in geopolitical tensions.
Realloys is developing an integrated North American rare earth supply chain, including its Hoidas Lake project in Saskatchewan and downstream metalization business in Ohio.
