According to information from the FBRC, the agreements reached create a foundation for a 10-year model of rare earth resource supplies and indicate a non-binding intention to invest in the development of metals and alloys necessary for the US defense industry.
Although the agreements are not mandatory, they set a strategic direction for further cooperation.
The partnership aims to explore and develop mining deposits in Kazakhstan, process rare earth oxides and concentrates, and then produce metals and alloys to be included in the US processing chain. An important element of this scheme is the REAlloys manufacturing platform, which is positioned as fully North American.
Company representatives emphasize that the project is aimed at creating a sustainable supply channel for both heavy and light rare earth elements, such as dysprosium and terbium, which are critical for the defense sector and high technologies. REAlloys highlights that this is not just about raw material cooperation but also about high value-added processing.
One potential source of raw materials could be the Kokbulak project—a concession area of about 127,000 square kilometers located in the Karaganda and Kostanay regions. According to available information, iron ore reserves in this area exceed 350 million tons, and the processing tails contain rare earth elements of commercial interest.
REAlloys already owns assets in North America, including projects at Lake Hoidas in the Canadian province of Saskatchewan and a manufacturing base in Ohio. This allows for the integration of Kazakhstani raw materials into the existing infrastructure without the need to create a new supply chain.
Under the new conditions, rare earth raw materials will not be exported at the concentrate stage, as was previously the case. Processing and metallization will occur in the US, allowing for control over key stages of production and reducing dependence on external processors.
REAlloys CEO Leonard Sternheim noted that this partnership is viewed as a balance between economic interests and US national security objectives, as well as a way to involve one of the most technologically advanced players in Central Asia in strategic supply chains.
AltynGroup's investment plans include participation in expanding REAlloys' operations in the US, which involves developing a specialized facility for the metallization of rare earth elements, which, according to available data, already serves US government structures, including the Defense Logistics Agency and the Department of Energy.
Overall, this partnership marks a step towards creating a sustainable North American supply chain for the production of rare earth metals and alloys, which in turn should reduce US dependence on imported supplies and processors, especially from Asian countries.
