Washington has drawn a new line in the global battle for critical minerals. The U.S. Export-Import Bank has issued a $200 million Letter of Interest to REAlloys Inc., a rare-earth company developing what could become North America’s first fully integrated mine-to-magnet supply chain.
The commitment marks one of the clearest signals yet that the United States intends to rebuild the rare-earth infrastructure that China has dominated for a generation.
REAlloys, now completing its merger with Blackboxstocks (NASDAQ: BLBX), plans to link every phase of the rare-earth process under one continental framework: mining at Hoidas Lake in Saskatchewan, processing at the Saskatchewan Research Council’s new separation facility, and magnet manufacturing in Euclid, Ohio.
The Strategic Gap
For more than twenty years, China has occupied every high-value stage of the rare-earth industry. Its producers supply about 70% of mined material but refine nearly 90% of global output and manufacture close to 92% of the world’s permanent magnets, according to the International Energy Agency (IEA).
That dominance gives Beijing leverage not only over prices, but over downstream industries ranging from electric vehicles to missile guidance and satellite systems.
The advantage stems from a deliberate state policy.
Since the 1990s, China’s Ministry of Industry and Information Technology has consolidated hundreds of rare-earth operators under state-backed conglomerates, tied export quotas to processing capacity, and built out low-cost refining hubs in Inner Mongolia and Jiangxi. Western economies, meanwhile, allowed their own refining and metallization capacity to erode. Today, mined concentrates from the United States are still shipped to China for separation before being sold back as finished magnets.
Beginning with restrictions on gallium and germanium and later extending to rare-earth processing technology, Beijing’s tightening export regime in 2025 was a frightening reminder of how much strategic weight that dominance carries. Those moves effectively turned materials that underpin global electrification into instruments of policy.
Washington’s own auditors have reached similar conclusions. The U.S. Government Accountability Office notes that rare-earth magnets underpin not only radar, propulsion, and guidance systems but also core civilian technologies—from electric-vehicle motors and wind-turbine generators to medical imaging equipment and advanced robotics. The United States remains almost entirely dependent on imports for these components, most of them originating in or processed through China. As the GAO warns, without domestic refining and magnet manufacturing, even American-mined rare earths contribute little to supply security or industrial resilience.
Building a Continental Chain
REAlloys’ development blueprint mirrors the anatomy of a modern supply chain rather than a conventional mining venture.
Upstream, its Hoidas Lake project in northern Saskatchewan, one of Canada’s largest undeveloped rare-earth deposits, holds more than two million tonnes of total rare-earth oxides. That resource anchors the raw-material base for an industry Washington once controlled but ceded decades ago.
A few hundred miles south, the Saskatchewan Research Council’s Rare Earth Processing Facility provides the missing link supporting: the mid-stream stage where mined concentrates are refined into high-purity oxides and metals. This is the point at which most Western projects still depend on Chinese processing. REAlloys’ partnership with the SRC gives the company a domestic route for separation and metallization, turning ore into a functional industrial feedstock.
Downstream, the company’s Euclid, Ohio operation, which was expanded through its acquisition of PMT Critical Metals, closes the loop. That facility produces samarium-cobalt and neodymium-iron-boron magnets used in defense, energy, and advanced-manufacturing markets. Locating production inside the U.S. automotive and aerospace corridor is intentional: it shortens logistics, aligns with federal procurement rules, and situates REAlloys within the manufacturing geography that will absorb the product.
The integration of mine, refinery, and magnet plant paints a clear picture of the architecture of Washington’s new industrial policy. Since 2020, the Department of Defense has committed more than $439 million to building a domestic mine-to-magnet capability.
The $200-million financing signal from EXIM extends that strategy into the credit domain, embedding REAlloys within the federal Supply Chain Resiliency Initiative and the broader effort to rebuild critical-materials manufacturing inside allied borders.
Allied Technology Meets North American Resources
October capped a pivotal month for REAlloys.
Just weeks after securing the $200-million financing signal from the U.S. Export-Import Bank, the company signed a strategic memorandum of understanding with the Japan Organization for Metals and Energy Security (JOGMEC), the state-backed agency overseen by Japan’s Ministry of Economy, Trade and Industry.
The accord outlines cooperation on technology transfer for magnet production, potential co-investment, and structured offtake arrangements for Japanese manufacturers.
Japan’s participation carries both industrial and geopolitical weight.
Its corporations lead the world in precision magnet design and processing efficiency. Embedding that expertise in North America’s production base could accelerate REAlloys’ path from pilot scale to commercial output while aligning with Japan’s own diversification policy. The International Energy Agency identifies closer U.S.–Japan coordination as a cornerstone of allied efforts to reduce exposure to Chinese refining.
For JOGMEC, the agreement extends a long-standing strategy of financing and de-risking non-Chinese rare-earth projects. The agency’s earlier support for Lynas Rare Earths Ltd. in Australia (one of the few large-scale producers operating entirely outside China) became the model for public-private cooperation in critical minerals.
Its partnership with REAlloys marks the first formal alliance with an American rare-earth company and signals a broader convergence of U.S. and Japanese industrial policy around secure magnet supply.
Magnets: The Core Bottleneck
Permanent magnets are the beating heart of the energy transition.
An electric-vehicle motor contains roughly one to two kilograms of neodymium-iron-boron magnets, while a single offshore wind turbine can use several tonnes, according to the U.S. Department of Energy’s Neodymium Magnets Supply Chain Report, further supported by data from the National Renewable Energy Laboratory.
Demand is projected to rise fourfold by 2040 as electrification accelerates, according to the DOE’s 2023 Critical Materials Assessment. There are few practical alternatives. Motors that replace rare-earth magnets with ferrite or induction designs lose efficiency and performance, which are trade-offs most automakers are unwilling to make.
This imbalance is starkly reflected in price volatility. A case in point: Rare-earth oxide benchmarks spiked after China’s April 2025 export controls, a pattern tracked in the IEA’s market snapshot.
Execution, Risk, and Geography
Re-establishing magnet capacity outside China remains technically demanding. High-purity solvent extraction, metallization, and sintering require precision engineering that took China decades to perfect. That’s why the GAO continues to warn that magnets underpin U.S. weapon-system reliability and that diversification progress is uneven.
The U.S. policy framework is meant to close that gap. The DoD’s multi-year mine-to-magnet program and EXIM’s critical-minerals credit guarantees are designed to bridge early-stage financing and shield projects from predatory pricing. The current suite of letters of interest–including $2.2 billion across allied mineral projects–represents Washington’s most assertive industrial intervention in decades.
REAlloys’ geographic footprint adds insulation. Saskatchewan offers low-cost power and regulatory stability. Ohio provides skilled labor and proximity to automotive, aerospace, and defense clients. Both facilities operate within the long-standing U.S.-Canada defense-trade framework, which permits joint sourcing and procurement for sensitive programs.
From Policy to Proof
It’s been a decisive stretch for REAlloys. The company’s leadership bench deepened in October when GM Defense President Stephen duMont took the role of non-executive chairman, tying REAlloys directly into the defense-industrial ecosystem and giving it access to a network that understands procurement cycles and federal contracting.
The next test is execution.
The $200-million Letter of Interest from EXIM now moves toward definitive financing.
Construction and commissioning of the Saskatchewan Research Council’s processing line will determine how quickly feedstock can reach the company’s magnet plant in Ohio. At the same time, structured offtake agreements with U.S. defense buyers and Japanese manufacturers are expected to anchor early demand.
Beyond being simple milestones, these are indicators of whether Washington’s critical-minerals policy can produce an end-to-end system that actually works. The International Energy Agency calls the emerging U.S.-Japan-Canada-Australia network a “diversification imperative,” not an attempt to match China ton for ton.
REAlloys fits squarely inside that framework: upstream resources, midstream refining, and downstream manufacturing contained within allied borders.
If the company hits its targets, it would deliver something the West hasn’t had in decades: a complete, transparent rare-earth supply chain from mine to magnet. In this way, REAlloys has become the text case for whether Washington’s new playbook can work.
Other companies to keep an eye on in the critical resources race
MP Materials Corp. (NYSE: MP) stands as the sole operator of a large-scale integrated rare earth mining and processing facility in North America: Mountain Pass in California. The company primarily produces rare earth materials like neodymium and praseodymium (NdPr), which are vital for the powerful permanent magnets found in electric vehicle motors, wind turbines, and defense systems.
The company's strategic vision has been underscored by a flurry of high-profile announcements this year, signaling a major push toward full vertical integration. In a landmark development, the United States Department of Defense announced a significant investment that will make it the largest shareholder, a clear demonstration of Washington's commitment to accelerating domestic rare earth magnet independence.
Despite a backdrop of volatile global commodity prices, which have impacted its quarterly revenue, the company's stock has shown resilience, often surging on news of domestic supply chain security efforts. Investors are focused less on near-term profitability fluctuations and more on the long-term, strategic value derived from government partnerships and the ambitious plan to start full-scale NdPr magnet manufacturing in Texas.
While traditionally known as a leading domestic uranium producer, Energy Fuels Inc. (NYSE American: UUUU) has rapidly diversified its business to become a prominent player in the critical minerals space, especially rare earth elements. The company utilizes its White Mesa Mill in Utah—the only conventional uranium mill in operation in the United States—to process monazite, a rare earth-bearing mineral, into an intermediate rare earth carbonate product.
In recent months, the company's financial announcements have led to some market choppiness. Specifically, its plan to raise significant capital through the private placement of convertible senior notes was met with a stock price dip, as investors reacted to the potential for future equity dilution.
As global momentum shifts toward both clean energy and domestic sourcing of strategic materials, Energy Fuels continues to push forward, securing new feedstock agreements to solidify its position as a multi-commodity critical minerals supplier, demonstrating a long-term commitment to capitalizing on the geopolitical emphasis on supply chain resilience.
Lithium Americas Corp. (NYSE: LAC) has cemented its position as a critical element in the North American electric vehicle (EV) supply chain, primarily through its development of the Thacker Pass project in Nevada. This site hosts one of the largest known lithium deposits in North America, and its successful development is seen as foundational to reducing the continent's reliance on foreign lithium sources for battery production.
The sheer national importance of Thacker Pass has generated significant non-traditional investment and political support. In a landmark move, the company successfully closed on a $2.23 billion loan from the U.S. Department of Energy under the Advanced Technology Vehicles Manufacturing Loan Program. Furthermore, this month saw the U.S. government announce a direct equity stake in the company, a dramatic shift that underscores the urgency of securing domestic lithium supply.
This level of governmental and corporate backing—including a major multi-year offtake agreement with General Motors (GM)—has made Lithium Americas a highly responsive stock to political and project news. Despite the typical volatility associated with development-stage mining projects, the stock's recent performance has been driven by these strategic, nation-building partnerships.
As one of the world's preeminent lithium producers, Albemarle Corporation (NYSE: ALB) is a behemoth in the chemicals and critical materials industry, with significant operations in lithium, bromine, and catalysts. The company’s lithium division is the key driver of its critical minerals profile, supplying the fundamental raw material for the battery cathodes that power the global fleet of electric vehicles and energy storage systems.
The last year has been defined by the dramatic volatility of global lithium prices, which plummeted after a period of extreme highs. This pricing pressure has severely impacted Albemarle’s stock performance and near-term profitability outlook, despite consistent growth in sales volumes. Recent news, however, suggests the market may be reaching a cyclical bottom, sparking renewed investor optimism.
While long-term expansion plans in Australia and Chile continue, management is strategically balancing the necessity of capital expenditure for future demand with the current need to maintain a strong balance sheet. For the stock, continued improvement in the lithium spot price is the critical catalyst, positioning the company as a key beneficiary of an eventual market rebound.
Sociedad Química y Minera de Chile (NYSE: SQM) is a Chilean chemical and mining company with global operations, standing as one of the world's largest producers of lithium, as well as being a significant player in specialized plant nutrition, iodine, and industrial chemicals. Its operations in the Atacama Desert give it access to some of the highest-grade lithium brine deposits globally, making it a pivotal supplier for the electric vehicle and high-tech manufacturing sectors. The firm’s diversified portfolio, however, offers a crucial buffer against commodity price swings.
The recent period has been marked by a mixed financial performance, showcasing the value of its diversified business model. While SQM's lithium segment saw profitability challenges due to a sharp drop in lithium prices, its iodine segment unexpectedly emerged as a standout performer, cushioning the overall earnings. This resilience highlights the strategic importance of its non-lithium commodities.
Despite the recent price volatility in the lithium market, the company is aggressively pursuing a massive expansion plan, budgeting heavily for both lithium and its other segments. This includes boosting its lithium carbonate and hydroxide capacities in Chile and Australia, underscoring management's confidence in the long-term, secular growth of the EV market.
Freeport-McMoRan Inc. (NYSE: FCX) is a leading international mining company with a primary focus on copper, a mineral deemed critical for global electrification, renewable energy infrastructure, and advanced manufacturing. The company is one of the world's largest publicly traded copper producers, with significant assets in North America, South America, and Indonesia, including the massive Grasberg complex. It also holds substantial reserves of molybdenum and gold, which often serve as valuable co-products.
Recent financial results showed the company effectively navigating operational challenges, with earnings and sales beating analyst estimates largely due to higher realized copper prices. While production volumes saw a temporary dip due to an isolated operational incident at one of its key sites, the strong market price for copper and gold helped buoy the quarter.
Looking ahead, the company is focused on increasing copper production and lowering its unit net cash costs to capitalize on the robust long-term demand forecast for the metal. Its stock often acts as a proxy for the broader health of the copper market, reacting strongly to news of global economic growth, infrastructure spending, and, most importantly, the pace of the clean energy transition.
Southern Copper Corporation (NYSE: SCCO), a majority-owned subsidiary of Grupo México, is one of the world's largest copper producers, with extensive mining, exploration, and smelting operations primarily in Peru and Mexico. Copper is its core product, a material essential to modern infrastructure and, critically, to electric vehicle and renewable energy technologies. The company also produces significant by-products, including molybdenum, zinc, and silver.
The firm has recently seen a strong positive reaction from the market following the news of a major regulatory breakthrough for its long-stalled Tía María copper project in Peru. After years of political and social hurdles, the company received a key government approval, setting the stage for expanded production capacity in the future.
SCCO's strategy is centered on significant capital investments aimed at expanding its mine capacity across its Latin American assets. In addition to the Tía María news, the company is benefiting from the full ramp-up of its Buenavista zinc concentrator, which will boost its overall zinc production—another critical mineral. The company's stock price, while volatile, is closely correlated with global copper prices, and its recent project progress suggests an ability to finally unlock its vast, high-quality resource potential.
Newmont Corporation (NYSE: NEM), the world's largest gold producer, has significantly expanded its profile as a critical minerals company through the large-scale copper assets it holds and its recent corporate maneuvering. While gold remains the anchor of its business, the company is strategically positioned with substantial copper reserves, which are becoming increasingly important for future growth and diversification.
The company has been making headlines recently regarding potential consolidation in the mining sector. Following a leadership change, analysts have speculated on the potential for a deeper strategic alliance or even a merger with Barrick Gold, its partner in the giant Nevada Gold Mines complex. Such a combination, if realized, would not only create a gold super-major but would also consolidate significant copper and other critical mineral assets, reshaping the global mining landscape.
While the market's focus remains primarily on the gold price, Newmont's growing exposure to copper ensures it remains relevant in the broader discussion about critical materials essential for the energy transition.
BHP Group (NYSE: BHP) is a multinational mining giant and one of the world's largest companies by market capitalization, with a diverse portfolio spanning iron ore, copper, coal, and nickel. Its designation as a critical mineral player comes from its massive scale in copper and nickel production—both fundamental materials for electric batteries, grid infrastructure, and sustainable technologies.
Recent news has focused on the company's involvement in major initiatives, including the US-Australia Critical Minerals Framework, which aims to accelerate allied-nation supply chains and may unlock financing for key projects.
Despite global price volatility in some of its key metals, the company's long-term commitment to critical minerals positions it as an essential, foundational supplier for the next generation of industrial technology.
Rio Tinto Group (NYSE: RIO) is a diversified global mining leader, best known for its aluminum and iron ore assets, but it holds a crucial and growing role in the critical minerals space, particularly copper and lithium. The company is making substantial investments to expand its copper portfolio, notably with the massive Resolution Copper joint venture in the U.S. and its large-scale Mongolian copper operations. It is also advancing a significant lithium project in Serbia.
The Resolution Copper project, which Rio Tinto co-owns, is specifically cited as a pillar in this framework, positioned to meet a substantial portion of future U.S. copper demand. This governmental attention provides a layer of strategic importance that transcends typical market dynamics.
The stock's stability is often a reflection of its vast, profitable iron ore business, but its growth narrative is increasingly being defined by its proactive push into battery metals, making it a well-diversified play on the global energy transition.
By. Michael Scott
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