The U.S. Army wants first dibs on American-produced heavy rare earths, and REalloys (NASDAQ: ALOY) has just signed a landmark nonbinding term sheet that could put it at the top of the military's supply chain list. And the terms are extraordinary. The term sheet proposes a potential 75-year operating lease on approximately 200 acres at Tooele Army Depot in Utah, where REalloys would build and operate a facility processing dysprosium and terbium, two metals China has spent decades monopolizing. In return, one of the things that the Army wants is the right of first offer on production, giving it an opportunity to secure the materials for American weapons manufacturers before they are offered to other buyers, although it is not obligated to purchase any.
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