# Army Advances Utah Rare-Earth Lease

The U.S. Army conditionally selected REalloys for exclusive negotiations on an Enhanced Use Lease to develop and operate privately financed heavy rare-earth processing facilities at Tooele Army Depot, Utah. The proposed facility would process dysprosium and terbium, with development targeted as early as 2027 and initial operating capability by 2028. This is not a final award: execution depends on definitive agreements and environmental and regulatory reviews. The solicitation includes U.S.-ownership eligibility requirements and applies Buy American Act and Davis-Bacon requirements to in-kind improvements.

- Contractors may find potential facility, infrastructure, and supply-chain opportunities tied to development of domestic heavy rare-earth processing capacity, but should distinguish the conditional selection from an executed lease.
- Companies pursuing related work should account for the stated U.S.-ownership eligibility conditions and the Buy American Act and Davis-Bacon requirements applicable to in-kind improvements.
- The proposed 2027 development start and 2028 initial operating capability provide planning context; lease finalization and required reviews remain prerequisites.

**Jurisdictions:** federal
**Industries:** Defense & Military, Construction & Infrastructure
**Topics:** Physical Infrastructure, Regulatory Compliance
**Published:** October 24, 2026

### Government Entities
- United States Army (Army)
- Army Strategic Capital Initiatives (SCI)

### Vendors
- REalloys Inc. (Conditionally selected exclusive-negotiation lease developer and operator)

### Key Quotes
> We believe selection by the U.S. Army for a processing facility on American soil is a powerful validation of REalloys’ mine-to-magnet strategy and of the urgent national need for domestic heavy rare earth capability.
> — Leonard Sternheim, Chief Executive Officer of REalloys

> We believe this important activity with the U.S. Army represents a strategic inflection point for REalloys and for the broader effort to establish a sovereign, resilient, and secure heavy rare earth processing capability in the United States.
> — Stephen duMont, Chairman of REalloys

> The U.S. Army’s decision to leverage its installations to establish domestic rare earth processing capacity, we believe, is strategically sound and operationally necessary.
> — General Jack Keane (Ret.), Board Director of REalloys

### Sources
- [REalloys (NASDAQ: ALOY) Announces Landmark Partnership Agreement with The United States Army & Army’s Strategic Capital Initiatives to Operate Processing Facilities on The Tooele Army Base in Utah](https://stocktwits.com/news-articles/business/others/r-ealloys-nasdaq-aloy-announces-landmark-partnership-agreement-with-the-united-states-army-and-army-s-strategic-capital-initiatives-to-operate-processing-facilities-on-the-tooele-army-base-in-utah/cZ1GxX0R7Xq) - Stocktwits