Ramaco Resources has signed a non-binding memorandum of understanding (MOU) with REalloys Inc. to establish a domestic supply chain for rare earth elements and permanent magnets. The agreement focuses on the offtake of mixed rare earth carbonate (MREC) from Ramaco’s Brook mine in Wyoming. This partnership marks a significant step toward developing a vertically integrated, U.S.-based alternative to traditional supply chains that currently rely heavily on overseas sources.
Advancing Domestic Rare Earth Production
The Brook mine is near Sheridan, Wyoming. It is the first new rare earth and critical mineral mine in the U.S. in over 70 years. Ramaco is currently building a pilot processing facility at the site. The company believes the Brook deposit is the nation’s largest unconventional source of rare earth elements. These elements are derived from coal and carbonaceous ore.
Under this partnership, Ramaco will supply MREC feedstock to REalloys. REalloys plans to process this material into separated rare earth oxides. This will occur at a facility supported by the Saskatchewan Research Council in Canada.
Furthermore, in alignment with this partnership, Ramaco will supply its proprietary scandium oxide to the REalloys facility in Euclid, Ohio. Consequently, this material will be utilized specifically for advanced alloy metallization processes.
This material will be used for specialized alloy metallization.
Strengthening the Permanent Magnet Supply Chain
This strategic collaboration aims to stabilize the supply of materials essential for high-performance permanent magnets. By connecting domestic feedstock from the Brook mine with advanced separation and metallization processes in North America, the companies are positioning themselves to provide a resilient alternative to the dominant Chinese supply model.
According to a 2025 preliminary economic assessment, the economic potential of the Brook mine is, in fact, substantial. Furthermore, this project demonstrates significant value for the company’s future growth. Consequently, it represents a core asset, while simultaneously offering a strategic advantage for long-term development.
The project boasts a post-tax net present value of approximately $1.2 billion and an internal rate of return of 38%. With pilot operations and full-scale development underway, the site is poised to become a cornerstone of the North American critical minerals sector.
Market Impact
○ Impacted Metals: Mixed rare earth carbonate, Rare earth oxides, Scandium oxide
○ Direction: Bullish
○ Time Horizon: Medium-term
○ Affected Industries: Automotive, Defense, Electronics, Renewable Energy
○ Related Price Reports: Rare Earth Weekly Price Report
○ Watch Item: Monitor the finalization of the definitive offtake agreement and the operational progress of the Brook mine pilot processing facility.
SuperMetalPrice Commentary:
The Ramaco-REalloys partnership highlights the aggressive push to secure “ex-China” supply chains for critical minerals. By integrating raw feedstock from Wyoming with processing capabilities in Ohio and Canada, the companies are addressing the upstream bottleneck that has historically hampered Western magnet production. Successful execution of this supply chain model could set a benchmark for future unconventional rare earth projects in North America.
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