A REalloys subsidiary and the United States Department of the Army signed a non-binding term sheet for a heavy rare-earth processing facility at the Tooele Army Depot, in Utah, under a potential 50-year lease with one 25-year renewal — the Army would have a right of first offer on the output, with no obligation to buy.

Rare earth processing is treated as a national security vulnerability, with China holding a near-100% global monopoly on dysprosium and terbium. The deal is described as a public-private partnership that could last up to 75 years, under the Army plan, announced in June, to lease parts of its installations to critical-mineral processors.