REalloys signs deal to secure rare earth feedstock from Kazakhstan's AltynGroup

Feb 3 (Reuters) - REalloys has signed a series of deals with Kazakhstan-based AltynGroup to secure rare earth feedstock from the Central Asian country for its North American processing and refining facilities, it said on Tuesday.

Under the agreement, the rare earth firm will receive initial offtake from the Kokbulak project, a 127,000 square kilometer area in the Karaganda and Kostanay regions where AltynGroup has permission to mine.

In 2025, U.S. President Donald Trump had called critical minerals a key priority as he hosted the leaders of five Central Asian nations at the White House, emphasizing his administration's efforts to expand U.S. supply chains through new global agreements.

REalloys' agreement aims to integrate Kazakhstan's vast rare earth deposits into Western supply chains, supporting industries such as defense, semiconductors, and clean energy, the company said.

"Kazakhstan has some of the largest rare earth deposits in the world, and positioned between Russia and China, strategic alignment is a priority for the United States," Leonard Sternheim, CEO of REalloys, said in a statement.

The Kokbulak area holds over 350 million tonnes of iron ore reserves, providing rare earth concentrates, including light and heavy elements, as byproducts from iron tailings.

The company said additional feedstock from Kazakhstan is expected over the coming year.

Late last year, the company received a letter of interest from the U.S. Export-Import Bank for a loan worth up to $200 million to fund processing and magnet facilities.

REalloys is one of the few companies in the U.S. fully equipped to process rare earths for magnets used in everything from robotics to defense applications.

The Ohio-based company, which was formed in 2023, also signed an agreement in October to source ore from a Greenland mine that Critical Metals Corp CRML.O aims to develop.