US DLA Contracts REalloys for Rare Earth Metals Plant to Boost Domestic Production and Supply Chain Security

Published: Mar 4, 2026 15:00

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The US Defense Logistics Agency signed a contract with rare earth producer REalloys to support the development of next-generation thermal reduction technology for samarium and gadolinium metals. The core of the effort is to build a plant with an annual capacity of 300 mt to reduce mixed samarium–europium–gadolinium concentrates into high-purity metals. At present, the US has no commercial production of either metal and is heavily reliant on overseas supply. REalloys said its process can cut costs by 50% and has been patented. The move aims to establish domestic capacity and strengthen national defense supply chain security.

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