By Ernest Scheyder
(Reuters) -Rare earths firm REalloys has received a letter of interest from the U.S. Export-Import Bank (EXIM) for a loan worth up to $200 million to fund processing and magnet facilities, in what would be Washington’s latest move to bolster American production of the specialized materials.
The loan, if approved, could boost U.S. access to magnets used in electric vehicles, cell phones, fighter jets and thousands of other products. Those magnets are at the center of global trade conflict as China uses them as leverage in negotiations with the Trump administration.
In a letter dated September 18 and seen by Reuters, privately held REalloys has met initial requirements to apply for the $200 million EXIM loan and, if approved, would have a 15-year repayment term, longer than the company likely would have with private financing.
EXIM, which acts as the U.S. government’s export credit agency, confirmed the letter of interest on Wednesday, the same day REalloys announced the loan potential.
The project would need to obtain U.S. customers for its magnets in order to receive the loan, the letter said.
The Ohio-based company, which was formed in 2023, plans to process rare earths in Saskatchewan into metal from either mined ore or recycled electronics. It signed an agreement earlier this month to source ore from a Greenland mine that Critical Metals Corp aims to develop.
That metal would then be taken to Ohio, where it would be turned into an alloy and then magnets. REalloys plans to provide cost details next month for its two facilities.
The company’s goal is to produce 10,000 metric tons per year of magnets by 2029, roughly the same volume planned by MP Materials, which is receiving price support from the U.S. government.
REalloys has not received any guarantees on price protection, a company representative said.
(Reporting by Ernest Scheyder in Houston; Editing by Matthew Lewis)
