Industrial Base Fund (IBF) and REalloys
I started digging further on all funding sources, what's legal, what isn't for Primes. There are a fair amount of limitations to how they can inject capital into their partners to assist in CapEx; government pass-through, not a VC.
Further, I did more digging on the likelihood for an invocation of 303 and how does the US leverage critical mineral partnerships for funding assistance with the House deadlocked on the Defense Bill?
Anything can happen, but the 303 might be one of the last levers. Stockpiles are at a critical juncture, Primes need to fulfill orders and the Jan 1 regulatory cliff is real, but there is a 'newish fund' that could be tapped.
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Industrial Base Fund / DIBC (10 U.S.C. § 4817)
ALOY's landmark partnership agreement with the U.S. Army to operate processing facilities on the Tooele Army Base should be the pull mechanism that helps unlock this capital.
**The recent $100M PiPE actually is exceedingly helpful in eliminating "friction" within the governmental funding process, thresholds and triggers.
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The IBF is managed under the Assistant Secretary of War for Industrial Base Policy and executes through the Defense Industrial Base Consortium (DIBC).
So, thank you Joe Kasper, he helped create all of this - he knows the processes, timelines, triggers!
The fund is sitting on massive, unspent multi-year allocations --- including $5B dedicated exclusively to critical minerals and materials supply chains.
This capital is already appropriated, it completely bypasses the current congressional impasse - Capital Available $100M to $400M.
I couldn't pin down a hard data point, only a pretty wide range.
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For ALOY, this can be structured as direct, non-dilutive facility-expansion grants for Tooele or as a guaranteed commodity price-floor contract to underwrite the scaling of heavy processing furnaces.
***Remember, ALOY Advisory Board Chairman, Joe Kasper and his Dept of War position and SGE status.
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This is exactly why the DIBC issued its targeted Request for Project Proposals (RPP-CM-26-01, "Domestic Processing Capabilities of Critical Minerals").
This solicitation targets 13 defense-critical minerals, including heavy rare earths like gadolinium and samarium, which aligns directly with ALOY's feedstock profile and its operational processing footprint at the Tooele Army Base.
The active pool available for immediate extraction via Other Transaction Agreements sits at roughly $515 million across the combined DPAP and IRA critical material accounts.
REalloys is the only viable metallization option for January 1, 2027.
What percentage of this capital will be allocated to ALOY and/or GM Defense and the Primes for ALOY?
How much HREE offtake does GM Defense-Lockheed Martin, RTX and perhaps L3 Harris need?
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Sources