The US Army is collaborating with rare earth developer REalloys to expand North American rare earth processing capacity for producing critical military equipment materials, marking progress in President Donald Trump's policy to rebuild domestic rare earth supply chains. REalloys CEO Leonard "Lipi" Sternheim detailed the partnership in a recent FOX Business interview, explaining the company's efforts with government and industry partners to develop "heavy rare earth" processing capabilities. The collaboration aims to eliminate US reliance on China for rare earth elements essential to advanced defense technologies, with a federal procurement rule taking effect January 1, 2027 set to restrict military purchases of China-linked products.
REalloys CEO Explains Heavy Rare Earth Processing Strategy in FOX Business Interview
Leonard "Lipi" Sternheim, CEO of rare earth developer REalloys, explained the company's collaboration with the US government and industry partners in a FOX Business interview. The company is developing processing capabilities for "heavy rare earth" elements including dysprosium and terbium, which are essential components in advanced military equipment such as fighter jets, missiles, submarines, and drones.
Sternheim stated in the interview: "Currently, China completely controls the entire supply chain for heavy rare earths, including downstream processing, refining, metallization, and even magnet manufacturing." He emphasized that REalloys' core objective is to relocate this "complete supply chain" entirely back to North America.
According to Sternheim, the key challenge is not finding rare earth deposits but rather rebuilding the refining and processing technologies needed to transform raw materials into usable end products. "Rare earths are rare not because those stones themselves are uncommon, but because the subsequent processing and refining are extremely complex technologies," Sternheim explained.
Federal Procurement Rule Restricts China-Linked Products Starting January 1, 2027
Sternheim indicated that a US federal procurement regulation taking effect January 1, 2027 will significantly accelerate the defense industrial base's transition to domestic sourcing. The regulation will strictly limit military units from purchasing any products associated with Chinese supply chains.
Sternheim acknowledged that expanding domestic capacity cannot be achieved overnight, but expressed high confidence in future development prospects, emphasizing that the United States and its allies will make substantial and significant progress in this field over the coming years.
US Army and REalloys Build Processing Facilities Directly on Military Bases
Regarding the close cooperation between the US Army and REalloys, Sternheim stated that the core purpose of the project is to ensure critical national defense strategic materials can be procured entirely domestically rather than relying on geopolitical competitors.
Sternheim emphasized: "This partnership with the military is crucial because it provides the security the nation needs. In the future, the US military will no longer need to rely on other countries for anything. We are manufacturing on US soil, even building these production lines directly on Army bases in collaboration with the military."
FAQ
What rare earth elements are critical for US military equipment?
Heavy rare earth elements including dysprosium and terbium are essential components for manufacturing fighter jets, missiles, submarines, and drones.
When does the federal procurement restriction on China-linked products take effect?
The regulation takes effect January 1, 2027, and will strictly limit military units from purchasing products associated with Chinese supply chains.
Where is REalloys building rare earth processing facilities?
REalloys is building processing facilities directly on US Army bases in collaboration with the military.
