- REAlloys and JOGMEC sign an MoU for joint development, technology transfer, and industrial-security cooperation
- The agreement enables Japanese separation and magnet-fabrication technologies
- The deal secures long-term supply for Japanese manufacturers, supports U.S. defense programs
As global competition accelerates to secure access to critical minerals far away from China, U.S. rare earth developer REAlloys Inc. has established a strategic partnership with Japan’s Organization for Metals and Energy Security (JOGMEC), a governmental agency in Japan's Ministry of Economy, Trade, and Industry responsible for securing industrial supply chains.
The US rare earth company has signed a Japan government deal, marking a major step in the strategic minerals partnership to strengthen the critical minerals supply chain.
The partnership, formalized by a Memorandum of Understanding (MoU), creates a framework for joint development, technology transfer, and industrial-security collaboration, which is the first engagement JOGMEC has had with an American rare earth producer.
This US Japan collaboration highlights growing cooperation in the rare earth industry news, forming a mineral trade agreement that reinforces the global supply chain, a key rare earth strategic deal, and strengthens US Japan economic ties.
This support is a continuation of Japan's and Washington's joint efforts to limit reliance on China's dominance, especially in respect to rare earths and magnets for advanced use in defense, energy, and semiconductor manufacturing.
JOGMEC has a track record of funding projects as far away as Australia and Africa to create diversity in the global supply chain and this partnership continues that effort in North America to support resource and manufacturing assets.
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As part of the Memorandum of Understanding (MoU), JOGMEC will contribute to the licensing and transfer of Japanese separation and magnet-fabrication technologies to REAlloys’ operations in North America, accelerating the scale-up of high-performance magnets, such as neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo).
The partnership also explores JOGMEC-financed investment for REAlloys’ vertically integrated supply chain, from mining rare earths in Saskatchewan, through an alloy separation complex in Saskatoon, to planned magnet manufacturing in Ohio.
"Japan brings unparalleled magnet and processing technology; North America brings scale and resources. Together, we are accelerating regional self-sufficiency in critical materials", stated Leonard Sternheim, REalloys' Chief Executive.
The MoU also establishes offtake arrangements to ensure long-term allotment of rare earth alloys and magnets to Japanese manufacturers, while REAlloys will ship to U.S. defense and energy programs.
"This partnership strengthens the foundation of economic security among trusted partners. By linking Japan's technology and North America's resources, we enhance global supply stability for materials essential to the future economy", added Hiroshi Kubota, Executive Vice President of JOGMEC.
The companies’ executives characterized the agreement as a best practice for allied industrial resilience, combining Japan’s rare earth separation expertise with U.S. mining and processing of raw materials to create a safe and transparent alternative supply chain, while considering additional collaboration in seabed resource recovery and joint research endeavors.