U.S. Defense Logistics Agency Awards Contract to Scale Domestic Rare Earth Metal Production

The Defense Logistics Agency has awarded a contract to Terves LLC, a subsidiary of REalloys Inc., to scale next-generation metallothermal processes for samarium and gadolinium metals. This contract represents a significant development for U.S. national security, as the country currently depends entirely on foreign sources for these critical defense materials. The DLA manages the global supply chain for the Department of War, NASA, and other government agencies through its DLA Strategic Materials division, which also oversees the National Defense Stockpile charged with securing domestic rare earth sources.

REalloys' proprietary technology enables direct reduction of Samarium-Europium-Gadolinium feedstocks into high-purity metals through a modular, semi-continuous processing architecture. This approach differs from conventional rare earth processing that relies on large, capital-intensive solvent extraction plants. The company has filed a provisional patent covering its direct reduction process and zero-waste metallization technology, which aims to reduce production costs by up to 50% while eliminating the need for traditional extraction facilities.

The contract will advance REalloys' gadolinium metallization capability while adding direct samarium metal production from mixed rare earth feedstocks, addressing a longstanding bottleneck in U.S. samarium supply. A central deliverable is the engineering design for a 300 ton per year production facility built around modular reactors that can be rapidly deployed and scaled to meet both steady-state and surge demand from the Department of War and commercial markets. This capability does not currently exist domestically, leaving U.S. defense and industrial users exposed to geopolitical risk, long lead times, and price volatility.

Samarium and gadolinium metals serve as essential inputs for high-temperature samarium-cobalt permanent magnets, precision guidance systems, aerospace and radar applications, advanced optics, and other defense technologies requiring materials capable of operating in extreme thermal and radiation environments. Samarium-cobalt magnets are the only magnetic material capable of withstanding the extreme heat of fighter jet engines and supersonic friction of precision-guided munitions, while gadolinium is essential for both stealth radar technology and safety control rods in nuclear reactors.

By establishing domestic production capabilities for these high-heat and neutron-absorbing metals, REalloys aims to secure foundational components required for next-generation American aerospace, defense, and energy independence. The company's zero-waste platform includes direct recycling of all byproducts, significantly reducing capital requirements and deployment timelines while enabling distributed domestic production aligned with U.S. defense and industrial policy priorities. This contract validates REalloys' ability to produce these metals domestically, effectively closing a strategic gap in supply chains for materials that have no substitute in extreme environments.