The Kazakh company AltynGroup and the North American REAlloys have announced the beginning of strategic cooperation. Under the agreements reached, rare earth raw materials from Kazakhstan will be integrated into the production chains of the USA, as reported by Exclusive.kz.
According to information from the FBRC, the agreements imply a 10-year framework model for the supply of rare earth raw materials, as well as a non-binding intention to invest in the expansion of the production of metals and alloys that will be used in the US defense sector.
Although the agreements are not legally binding, they set a strategic course for the joint work of the parties.
Reportedly, the main goal of the partnership is to explore and engage mining sites in Kazakhstan, process rare earth oxides and concentrates, and subsequently produce metals and alloys for integration into the production chains of the USA. The REAlloys production platform will be a key element of this scheme, positioned as fully North American.
Representatives of REAlloys note that the project aims to create a sustainable supply channel for both light and heavy rare earth elements, including dysprosium and terbium, which are vital for the defense industry and high technologies. The company also emphasizes the importance of high value-added processing rather than just raw material cooperation.
One of the potential sources of raw materials is the Kokbulak project—a concession area of about 127,000 square kilometers located in the Karaganda and Kostanay regions. According to available data, iron ore reserves in this area exceed 350 million tons, and rare earth elements of commercial interest may be present in the processing tails.
Currently, REAlloys already owns assets in North America, including projects at Lake Hoidas in Saskatchewan, Canada, and production facilities in Ohio. This will allow the company to effectively integrate Kazakh raw materials into the existing infrastructure without the need to create a new supply chain.
It is noted that the new approach to cooperation differs from previous practices, where rare earth raw materials were exported in the form of concentrates. In the current model, processing and metallization will occur in the USA, ensuring control over crucial stages of production and reducing dependence on foreign processors.
Leonard Sternheim, CEO of REAlloys, emphasizes that this partnership combines economic interests and issues of US national security, as well as the opportunity to involve one of the most technologically advanced players in Central Asia in strategic supply chains.
AltynGroup plans to participate in the expansion of REAlloys' American operations, including the establishment of a specialized facility for the metallization of rare earth elements, which already serves clients from US government agencies, such as the Defense Logistics Agency and the Department of Energy.
Overall, this partnership is seen as a step towards creating a sustainable production chain for rare earth metals and alloys in North America, which will reduce the USA's dependence on external sources and processors, including Asian countries.
