Saskatchewan secures rare earth partnership

The Government of Saskatchewan and the Saskatchewan Research Council (SRC) have announced the signing of historic contracts with REalloys Inc. (REA), in the hopes of solidifying Saskatchewan's position as a leader in establishing North America's first fully-integrated rare earth supply chain.

The partnership between SRC and REA is centred on a five-year offtake agreement. Under this agreement, REA will purchase the majority of annual production of Neodymium-Praseodymium (NdPr) metal and Dysprosium (Dy) and Terbium (Tb) oxides from SRC's rare earths processing facility in Saskatoon. This agreement will provide strong commercial returns to SRC and Saskatchewan while enabling REA to meet regulatory compliance in delivering rare earth metals to its U.S. defense industrial base clients.

REA has also partnered with SRC to conduct a feasibility study for a large-scale rare earth processing, separation, and metallization complex in Saskatoon. This facility would be one of the largest and most advanced globally, further establishing Saskatchewan as a global hub for rare earth technology development, material production, and midstream processing capabilities. The project has the potential to bring hundreds of high-quality jobs to Saskatoon.

"This historic agreement confirms that companies around the world recognize the value of doing business in Saskatchewan and reinforces our province's growing position as a world-leading rare earth hub," Warren Kaeding, the Saskatchewan minister responsible for SRC, stated. "The Government of Saskatchewan remains committed to advancing critical minerals development, attracting private-sector investment, and strengthening North American supply chain independence in this globally strategic sector."

SRC's rare earth processing facility will be North America's first fully integrated, commercial-scale rare earth processing and metals facility when fully operational in early 2027. The facility will include monazite processing, state-of-the-art AI-controlled rare earth element (REE) separation, and metal smelting capabilities, creating a complete supply chain previously available only in China.

At full operation, SRC's facility will produce 400 tonnes of high-purity NdPr metal per year, increasing to 600 tonnes per year, along with significant quantities of Dy and Tb oxides and metals. REA will purchase the majority of this output, providing a stable, long-term anchor customer for the facility. The remaining production will be available to other domestic and international customers, supporting broader market development and diversification opportunities.

"One of the core goals of SRC's processing facility has always been to help build a rare earth supply chain in North America. By developing our own solvent extraction and metal smelting technology--and now securing a major offtake partner--Saskatchewan is demonstrating real leadership in building a resilient and strategically vital supply chain," SRC President and CEO Mike Crabtree commented.

"These agreements position REalloys as the only fully integrated rare earth platform in the Western Hemisphere capable of advancing light and heavy rare earth metals at commercial scale on an accelerated timeline. By aligning Canadian innovation with U.S. defence needs, we are strengthening the security of the Western world and building the first scalable alternative to China's rare earth dominance," REalloys CEO and Founder Lipi Sternheim added.

For more information, visit www.src.sk.ca.