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U.S. Army Establishes Domestic Rare Earth Processing Plants Before January 2027 Chinese Supply Chain Ban

GateNews
According to FOX Business, the U.S. Army is partnering with rare earth developer REalloys to build domestic processing facilities, with a federal procurement ban on Chinese rare earth supplies set to take effect on January 1, 2027. REalloys CEO Leonard Sternheim outlined the collaboration's goal: to establish a complete rare earth supply chain within North America, encompassing processing, refining, and metallization of critical elements like dysprosium and terbium used in military equipment including fighter jets, missiles, and drones. The 2027 federal procurement rule will strictly prohibit military units from purchasing products with ties to Chinese supply chains, accelerating the shift toward domestic sourcing. Sternheim emphasized that the core challenge lies not in finding rare earth deposits but in rebuilding complex refining and processing technologies; manufacturing will directly occur at U.S. military bases to ensure geopolitical security.
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