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SASKATOON — Saskatchewan is moving to solidify Canada’s role in the North American rare earth supply chain through a new partnership between the Saskatchewan Research Council and U.S. based REalloys, which plans to expand heavy rare earth processing capacity and anchor long term production in the province.
REalloys said this week it will invest about US$21 million to expand a heavy rare earths plant expected to begin operating in early 2027, securing 80 per cent of annual production through a long term offtake agreement. The deal aligns with U.S. efforts to diversify supply chains for specialized materials used in wind turbines, electric vehicles and defence technologies.
The Saskatchewan Research Council confirmed the partnership in a suite of contracts that include a five year offtake agreement covering most of the neodymium praseodymium metal and dysprosium and terbium oxides produced at SRC’s Rare Earth Processing Facility in Saskatoon. “This historic agreement confirms that companies around the world recognize the value of doing business in Saskatchewan,” Minister Responsible for SRC Warren Kaeding said.
SRC says the facility will be the first fully integrated commercial scale rare earth processing and metals operation in North America, with monazite processing, AI controlled separation and metal smelting. Once fully operational, it is expected to produce up to 600 tonnes of high purity magnet metals each year, supporting both domestic and international customers.
In addition to the offtake deal, REalloys and SRC will study a large scale expansion that could make Saskatoon home to one of the world’s most advanced rare earth processing and metallization complexes. REalloys CEO Lipi Sternheim said the agreement positions the company “as the only fully integrated rare earth platform in the Western Hemisphere capable of advancing light and heavy rare earth metals at commercial scale.”
Officials say the partnership strengthens Canada’s strategic position in critical minerals, helps build a resilient supply chain and supports economic development through future job creation in the province.
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