r/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

https://www.bhfs.com/insight/u-s-expands-critical-minerals-financing-and-bilateral-partnerships-under-trump/

https://realloys.com/#:~:text=REalloys%20(NASDAQ%3A%20ALOY)%20Announces%20Landmark%20Partnership%20Agreement,Approximately%20%24100%20Million.%20Continue%20reading.%20PRESS%20RELEASE.

https://www.acq.osd.mil/news/office-news/asda/2024/Summary-of-DPAP-Awards-Funded-via-Inflation-Reduction-Act.html#:~:text=Summary%20of%20DPAP%20Awards%20Funded%20via%20Inflation,Inflation%20Reduction%20Act%20(IRA)%20(Public%20Law%20117%2D169).

I was thinking about Yesterday's DoE awarding $75 million as part of a multi-tiered, $1 billion federal funding architecture managed by their Office of Critical Minerals and Energy Innovation.

There is an additional 175M for the Mines & Metals Capacity Expansion program, for Topic Area 2 expanding funding to midstream processing, separation, and recycling across all industrial sectors.

Selections for this tranche are scheduled for Q4 2026.

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The REE Demonstration Facility Program 135M

It funds the design, construction, and operation of a demonstration-scale facility to extract, separate, and refine rare earths from acid mine drainage and mine waste.

This program strictly mandates an academic partner, aligning perfectly with the WVU pipeline, which ALOY is firmly entrenched as the midstream and metallization partner.

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Critical Minerals and Materials Accelerator 50M

A concurrent rolling program designed to fast-track late-stage, market-ready commercialization technologies within a compressed 3-to-7-year window.

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Federal cash flows directly to the coal operators - Ramaco - or WVU partners to build and operate raw extraction pilot plants.

The grant covers 50% to 80% of the upstream Opex and Capex needed to process toxic acid mine drainage or coal refuse into Mixed Rare Earth Carbonates.

The capital flows to ALOY as an economic subsidy embedded in the feedstock.

Since federal grants fully subsidize the upstream extraction infrastructure, MCM and Ramaco supply ALOY with highly enriched feedstock at a drastically suppressed, stable cost-basis under long-term offtake agreements.

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The EPA provides no direct funding to ALOY.

However, its strict enforcement of perpetual pH neutralization mandates for acid mine drainage forces coal operators to continuously process mine runoff.

This environmental mandate legally guarantees ALOY’s upstream partners a constant, highly subsidized supply of pre-concentrated raw waste material.

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Sources

https://www.energy.gov/cmei/mining/funding-notice-mines-metals-capacity-expansion-piloting-product-critical-minerals-and#:~:text=American%20Resources%20Corporation%20(Headquarters%3A%20Fishers%2C%20Indiana)%20%2D,Expected%20Date%20for%20Selection%20Notifications%3A%20Summer%202026.

https://www.northernminer.com/news/us-awards-75m-to-recover-critical-metals-from-coal/1003892680/#:~:text=American%20Resources%20(Nasdaq%3A%20AREC)%20in%20Indiana%20and,will%20be%20announced%20at%20a%20later%20date.

https://missioncriticalmaterials.com/another-mans-treasure/#:\~:text=Acid%20mine%20drainage%20must%20be%20cleaned%2C%20whether,infrastructure%20at%20sites%20that%20are%20already%20permitted.

https://www.nytimes.com/2026/07/01/business/tungsten-mine-south-korea.html?unlocked_article_code=1.u1A.obF5.LN33VXMpuIIr&smid=url-share

ALM

REalloys is not one of the 5 firms to secure DoE funding at this time for their coal mine and HREE unlocking, however their MOUs with Ramaco, Mission Critical Materials and West Virginia University and Patriot Exploration, ensure they're 'likely' to receive additional DoE funding for phase II projects which are part of the second set under Topic Area 2: Mines & Metals Pilots – All Industries will be announced at a later date.

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- Ramaco will supply Mixed Rare Earth Carbonate (MREC) and separated scandium oxide from its coal-hosted Brook Mine property in Wyoming.

- ALOY will incorporate into its processing network for separation, alloy metallization, and final permanent magnet manufacturing.

- The Mission Critical Materials partnership focuses entirely on pulling rare earths out of liquid mining liabilities—specifically acid mine drainage (AMD) and industrial tailings from coal mining sites

- Mission Critical Materials is the for-profit startup explicitly spun out to commercialize a decade of proven AMDREE (Acid Mine Drainage Rare Earth Element) recovery technology

- WVU’s water-treatment extraction technology isolates a material stream from coal mine runoff that is composed of 45% to 50% heavy rare earths (predominantly high-value target elements like yttrium, dysprosium, and terbium)

- WVU created the science and patented the extraction methodology; MCM deploys the physical processing infrastructure at permitted coal wastewater sites; and ALOY buys the resulting HREE concentrate to feed its midstream refining and defense-grade magnet manufacturing lines.

- Patriot Exploration & Mining focuses on thermal coal assets, frequently working to structure long-term non-extraction and carbon-preservation frameworks for viable coal seams.

Unlocking the REEs from a 2-billion-tonne resource network across those 150+ Appalachian Basin sites consists entirely of legacy coal refuse, waste materials, and coal-associated footprints enabling them to clean up and monetize these legacy sites sustainably without actively extracting traditional coal.

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Sources

https://www.northernminer.com/news/us-awards-75m-to-recover-critical-metals-from-coal/1003892680/#:~:text=By%3A%20Blair%20McBride%20July%203%2C%202026.%20The,Materials%20Recovery%20at%20Domestic%20Industrial%20Facilities%20program.

https://missioncriticalmaterials.com/another-mans-treasure/#:~:text=Now%2C%20thanks%20to%20a%20company%20called%20Mission,defense%20systems%2C%20advanced%20electronics%20and%20energy%20infrastructure.

https://wvutoday.wvu.edu/stories/2026/05/26/from-wastes-to-resources-wvu-expands-rare-earth-research-to-help-strengthen-america-s-domestic-critical-minerals-supply#:~:text=The%20University%20is%20launching%20the%20WVU%20Rare,of%20these%20materials.%20(%20WVU%20Photo%2FBrian%20Persinger)

https://www.stocktitan.net/sec-filings/METC/8-k-ramaco-resources-inc-reports-material-event-41da2fcbb96d.html#:~:text=The%20understanding%20contemplates%20Ramaco%20supplying%20Mixed%20Rare,alloy%20metallization%20at%20REalloys'%20Euclid%2C%20Ohio%20facility.

https://www.patriotxmine.com/patriot-carbon#:~:text=Preserving%20Commercially%20Viable%20Thermal%20Coal%20Assets%20for,away%20from%20extraction%20and%20energy%20production%20pathways.

Good article, lays out the business case for owning the "toll booth" to "the future".

HREEs aren't just for magnets, although Phase 1 ALOY's roll-out will be for Primes ----> ALOY is poised to capture many other verticals (and more importantly, approved budgeted massive critical infrastructure projects).

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https://finance.yahoo.com/energy/article/electricity-demand-is-set-to-grow-faster-than-the-global-economy-amid-the-ai-boom-chart-of-the-day-100000388.html

After a decade of stagnant power demand, the economy is undergoing a massive wave of electrification, Bank of America metals strategists led by Michael Widmer wrote in a recent note to clients.

Electricity demand is now expected to grow significantly faster than GDP for the next two and a half years.

Global power usage by data centers is expected to grow from a current level of around 55 gigawatts to 84 gigawatts — equivalent to the power usage of roughly 70 million homes — in only the next two years, according to research from Goldman Sachs.

The electricity needs of the infrastructure will force further build-outs of global power grids, all of which require substantial amounts of metals for wiring, transformers, and other components.

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REalloy's core focus for Phase 1 are the HREEs Dysprosium (Dy) and Terbium (Tb), which play an indispensable, hidden role in the physical infrastructure layer of AI compute factories and systems; the massive power densities and thermal profiles of AI clusters require physical hardware that depends fundamentally on HREEs.

- Advanced Data Center Cooling Infrastructure

- Mass Data Storage Systems

- Advanced Semiconductor Manufacturing Equipment

- Power Infrastructure and Clean Energy Grid Tie-Ins

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Phase 1 is the closed loop for GM Defense and their Prime partners. Keep in mind, ALOY's furnace is modular, scalable and can be deployed globally, all weather too.

Dept of War's MOU with REalloys specifies Dysprosium (Dy) and Terbium (Tb) two of the most critical and highest-value HREEs.

https://finance.yahoo.com/sectors/energy/articles/realloys-nasdaq-aloy-receives-department-112200537.html

PMT Critical Metals and Terves, LLC are two of the 3-4 firms that were integrated to create REalloys. In March 2026, Terves, LLC secured DPA II grant for Samarium earlier in Q1 26 --- this provides non-dilutive capital, and unlocked Section 45X, immediate tax reimbursement (10%) for production related expenses plus extended a 40 year relationship, etc.

Today's report also states:

"...warns that the U.S. defense sector is down to a mere two-to-three-year supply of Samarium."

MP Materials holds massive domestic Samarium deposits, they currently lack the capacity to separate it from the raw ore.

The DoD owns 15% of MP Materials, invocation of 303 enables them to mandate alignment in the name of National Security. Further, 303 enables access to the $1.409B in unallocated DPA III money, bypassing Congress too.

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May 6th, Dept of War MOU to ALOY

A Department of War MOU delivered to REalloys' leadership team underscores the urgency to secure domestic HREEs in advance of the January 2027 prohibition on Chinese-origin rare earth materials.

The MOU designates Dysprosium (Dy) and Terbium (Tb) as two of the most critical and highest-value HREEs, aligning with REalloys' strategic intent and purpose to build HREE processing facilities within North America.

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HREE Price Spike

The NdPr alloy benchmark jumped 21.4% to $133.02/kg, hitting a new 2026 high.

Dysprosium is up 25.4% ($261.63/kg), while Terbium climbed 21.6% ($1,179.54/kg).

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Sources

https://finance.yahoo.com/news/u-defense-logistics-agency-awards-120000481.html

https://finance.yahoo.com/sectors/energy/articles/realloys-nasdaq-aloy-receives-department-112200537.html

https://rare-earth-mining.com/rare-earth-market-outlook-july-2026/#:~:text=NdPr%20Complex%3A%20Second%20Consecutive%20Month%20of%20Gains%2C,trading%20above%20every%20prior%202026%20monthly%20reading.

https://www.nationaldefensemagazine.org/articles/2026/7/1/stockpiles-of-critical-mineral-needed-for-highend-magnets-begin-to-dwindle#:~:text=The%20restrictions%20are%20colliding%20with%20urgent%20demand,help%20cool%20sophisticated%20electronics%20and%20other%20systems.

On Friday, June 26, 2026, Canada and Japan finalized a billion-dollar critical minerals alliance aimed at securing supply chains and creating a shared metals stockpile.

Concurrently, the European Union officially signed onto the U.S.-led "Pax Silica" economic-security pact, establishing a unified transatlantic front to control advanced semiconductor manufacturing and AI infrastructure

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Middle Powers Alignment

This alliance shifts the defensive paradigm from broad, slow-moving multi-nation coalitions to hyper-focused, agile syndicates.

Canada and Australia act as the resource anchors. Japan ensures that the extracted minerals are converted into usable technology. France provides the political and financial leverage to shield this ecosystem.

Canada-Japan Critical Minerals Alliance

Following the broader G7 Summit framework established in Évian, France, Canada and Japan advanced a strategic bilateral partnership.

Canada's Minister of International Trade announced that the two nations are exploring joint critical mineral projects and a shared metals stockpile to diversify supply chains away from market concentration.

Commercial deals exceeding C$1 billion were signed between Canadian and Japanese firms.

Strengthening critical mineral value chains

China holds a dominant position in this strategic sector, as they control the entire value chain, from extraction and refining to industrial processing.

These Middle Powers want to encourage the diversification of supply chains and strengthen critical mineral value chains from industrial, financing, trade, traceability and transparency, storage and recycling perspectives.

By working with its G7 partners, France (financing) wants to create mutually beneficial partnerships and ensure greater security for the supply of essential resources.

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Pax Silica

The agreement establishes a coordinated approach across five critical domains:

- Critical mineral refining, energy inputs, advanced manufacturing, semiconductors, and AI infrastructure.

The explicit objective is the mitigation of China's near-monopoly on midstream mineral processing and legacy chip assembly.

The European Commission signed the declaration on behalf of the 27 European Union member states, expanding the pact to 24 formal signatories and over 35 aligned economies backing a parallel Joint Statement on AI Opportunity.

The accession of the European Union fundamentally shifts Pax Silica from a US-centric diplomatic initiative into a global supply chain cartel

The Pax Pass system

Backed by an initial $50 million funding deployment, this AI-driven customs and provenance network coordinates with key maritime authorities, including Panama, to establish expedited, friction-free transit lanes through the Panama Canal.

This ensures that restricted critical minerals, semiconductor substrates, and microchips move through secure, audited supply chains without border delays.

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Sources

https://letsdatascience.com/news/pax-silica-pact-excludes-china-empowers-defense-firms-34325425

https://us.diplomatie.gouv.fr/en/g7-priorities-evian-summit

https://www.indexbox.io/blog/canada-and-japan-explore-joint-critical-mineral-projects-and-stockpile-to-reduce-chinas-dominance/#:~:text=The%20push%20for%20closer%20cooperation%20in%20energy,to%20defense%2C%20automotive%2C%20and%20clean%20energy%20industries.

https://m.miningweekly.com/article/realloys-ioneer-selected-for-critical-mineral-plant-builds-at-us-army-depot-2026-06-26

https://appropriations.house.gov/schedule/markups

In the context of the House Appropriations Committee, this specific process determines exactly how federal discretionary funding is distributed across various government agencies, defense portfolios, and public programs.

A markup transitions a bill from an initial staff-drafted text into a finalized, committee-approved legislative product.

My Speculation

Aerospace and Defense Contractors met the last 2 days in Boston to determine optimizing supply chains, metallization standards and HREE/REE pricing floors. These elements and requests have been communicated to the House Appropriations Committee members.

With the Jan 1, 2027 regulatory cliff, there's a sense of urgency to implement these elements and to create a frictionless environment, so invoking section 303, making the US Government the buyer of 1st resort, setting price floors and structuring and scaling ALOY as the metallization standard for these Primes.

This enables the $200M EXIM LOI to be bound plus perhaps sizable OSC money to scale operations.

GM Defense and Lockheed Martin provided a model for other Primes, we'll see how the day goes.

GL