U.S. Army and REalloys Sign Rare Earth Term Sheet for Facility at Utah's Tooele Depot
On November 3, the U.S. Army and rare earth processor REalloys announced they have signed a non-binding term sheet for a heavy rare earth processing facility at Tooele Army Depot in Utah. It is a step toward bringing production of defense-critical materials onto a U.S. military installation, but the term sheet itself is not a final lease and does not amount to approval to build the plant. Under the framework, the proposed project would cover about 200 acres and process the heavy rare earths dysprosium and terbium, used in high-temperature permanent magnets for precision-guided weapons, electric motors, sonar, radar and other defense systems. The framework contemplates an initial 50-year enhanced use lease, renewable for another 25 years with Army consent. REalloys would finance, build, operate and ultimately remove the facility, while land ownership remains with the U.S. government. The Army would have a right of first offer to purchase the facility's output, which does not constitute a binding purchase obligation. The term sheet also sets an 18-month conditions period: if the parties cannot reach agreement or obtain waivers on rent, the development plan, environmental review and permitting, foreign ownership review, project financing and board approval within that period, either side may terminate the term sheet. The Army says rare earth processing is a national security weak point, with China holding a near-monopoly in dysprosium and terbium processing. The project stems from the Army's June 25, 2026 selection of REalloys for exclusive negotiations under its Strategic Capital program; the November 3 announcement marks the talks entering their next stage, not a new award made that day. The project involves no mining at the depot; feedstock will be brought in from outside.
Source: REalloys
Published by GSM · USA (original Chinese edition)
Photo: 图：犹他州 Tooele 陆军仓库的风力发电机（U.S. Army photo by John Prettyman/released – U.S. Army Corps of Engineers Sacram，Public domain，经 Wikimedia Commons）。 / Photo: A wind turbine at Tooele Army Depot in Utah (U.S. Army photo by John Prettyman/released – U.S. Army Corps of Engineers Sacram, Public domain, via Wikimedia Commons).
