The Department of Defense has awarded a two-year contract worth up to $1.7 million to Ohio-based REalloys to demonstrate rare earths processing, the company said Monday.
REalloys, which has operations in the U.S. and Saskatchewan, Canada, plans to process up to 300 tons per year of samarium and gadolinium into metal so that can be used to make magnets. Samarium-cobalt magnets are capable of withstanding extreme heat of fighter jet engines and munitions’ supersonic friction, the company said.
The company has already received a letter of intent for $200 million from the Export-Import Bank to develop a rare earths facility in Canada.
China moved to restrict exports last year of rare earths and other minerals, fueling the Trump administration’s efforts to diversify supplies.
