REalloys-MCM pact leads to unconventional route to the US rare earth security

REalloys Inc. and Mission Critical Materials LLC (MCM) have signed an agreement to build a fully domestic rare earth supply chain in the United States, leveraging an unconventional source of acid mine drainage. This is going to be the first end-to-end US production pathway that converts hazardous mine wastewater into rare earth metals and magnets for defence use. The agreement is non-binding but outlines a framework linking upstream recovery technology with downstream processing and magnet production.

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Under the arrangement, REalloys will serve as MCM’s preferred downstream partner for rare earth materials extracted from acid mine drainage, a toxic by-product of coal and hard-rock mining. MCM’s recovery technology was developed at West Virginia University with backing from the US Department of Energy and the Department of War, and is designed to extract rare earth elements from wastewater streams typically considered an environmental liability.

The process yields mixed rare earth oxides, including heavy rare earth minerals such as dysprosium, terbium, yttrium and gadolinium, materials that are critical to defence systems and advanced manufacturing. MCM is currently evaluating potential commercial sites across domestic coal and hard-rock mine drainage locations within the United States.

As part of the collaboration, REalloys will carry out separation, metallisation and magnet-grade testing to demonstrate a complete US-based production route. The companies said they expect to move towards negotiating a definitive multi-year offtake agreement in 2026.

“By turning environmental liability into strategic sources of rare earth feedstock, we are securing domestic access to elements at the heart of U.S. Defence Technologies and advanced manufacturing,” said Leonard Sternheim, Chief Executive Officer of REalloys.

The partnership comes as REalloys continues to advance a planned merger with Blackboxstocks Inc., which is listed on Nasdaq under the ticker BLBX. Blackboxstocks shares have risen 343.81 per cent over the past year and were trading at USD 9.46, although InvestingPro analysis suggests the stock is currently priced above its assessed Fair Value. The company has a market capitalisation of USD 40.12 million and carries a “FAIR” Financial Health rating, according to InvestingPro data.

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Blackboxstocks, through its merger target, has exposure to rare earth resources at Hoidas Lake and has established midstream processing capabilities via a partnership with the Saskatchewan Research Council. Investors tracking the company can access additional analysis, including more than 10 ProTips and detailed financial metrics, through InvestingPro.

The REalloys–MCM collaboration also aligns with broader federal objectives to reduce dependence on foreign supply chains for critical minerals. Both companies plan to pursue further Department of Energy and Department of War funding opportunities in 2026 to accelerate the move towards commercial deployment.

Separately, Blackboxstocks has announced that its 2025 Annual Meeting of Stockholders will take place on February 2, 2026, with December 10, 2025, set as the record date for determining voting eligibility.

Momentum around REalloys has also been reinforced by additional strategic developments. The company has secured a USD 200 million Letter of Interest from the Export-Import Bank of the United States under the China and Transformational Exports Program, intended to support the creation of a vertically integrated rare earth supply chain in North America. The letter remains valid until October 14, 2026.

In parallel, REalloys has signed a memorandum of understanding with Japan’s Organisation for Metals and Energy Security (JOGMEC), establishing a framework for cooperation in rare earth development and technology transfer. The agreement represents JOGMEC’s first engagement with a US-based rare earth company.

Taken together, the developments point to an accelerating strategy around domestic rare earth production, with Blackboxstocks and REalloys positioning themselves at the intersection of environmental remediation, critical minerals security and defence supply chains.

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