Ramaco Resources, REalloys ink offtake MoU for rare earths carbonate from Brook mine

In a significant move poised to reshape the landscape of critical mineral supply chains within the United States, Ramaco Resources (NASDAQ: METC, METCB) and REalloys Inc. (NASDAQ: ALOY) announced on June 1, 2026, the signing of a non-binding Memorandum of Understanding (MOU). This strategic alliance targets the establishment of a robust domestic supply chain for rare earth elements and permanent magnets, critical components for numerous advanced technologies from electric vehicles to defense systems. The agreement initiates a period of due diligence, aiming to finalize an offtake agreement that would see Ramaco provide key rare earth feedstock from its burgeoning Brook mine in Wyoming to REalloys for further processing.

A Strategic Alliance for Domestic Supply

The MOU outlines a cooperative relationship where Ramaco Resources, a prominent player in the coal and now critical minerals sector, will supply REalloys Inc., an Ohio-based rare earth company, with mixed rare earth carbonate (MREC) and separate scandium oxide. This feedstock will originate from Ramaco’s Brook mine, which the company asserts holds what is believed to be the nation’s largest unconventional deposit of rare earth elements and critical minerals derived from coal and carbonaceous ore. The overarching objective, as highlighted by Randall Atkins, CEO of Ramaco Resources, is to underpin a resilient, ex-China permanent magnet supply chain, thereby enhancing national energy and technological independence.

“Ramaco is proud to pursue a future partnership with REalloys to supply domestically sourced mixed rare earth carbonates and scandium oxide that could underpin a resilient, ex China permanent magnet supply chain,” Atkins stated in a news release. He added, “We are progressing to position the Brook mine to potentially deliver both reliable MREC feedstock tailored to REalloys’ SRC separation facilities as well as our own scandium oxide for REalloys’ metallization process.” This sentiment underscores the strategic intent to create an integrated domestic pathway for these vital materials.

The Brook Mine: An Unconventional US Resource

Nestled near Sheridan, Wyoming, the Brook mine represents a monumental development for the American mining industry. Ramaco Resources has boldly claimed its status as America’s first new rare earth element and critical mineral mine in over 70 years. This distinction is particularly noteworthy given the long period of U.S. reliance on foreign, predominantly Chinese, sources for these essential materials. The mine's unique geological setting, utilizing coal and carbonaceous ore as a source for rare earths and critical minerals, positions it at the forefront of innovative extraction methodologies.

As of January, full-scale mining operations and the construction of a pilot processing facility at the Brook mine were already underway. Initially, the project is focused on the vertically integrated production of commercial oxides, signifying Ramaco’s commitment to not only extract raw materials but also to advance them further along the value chain. The company’s vision for the Brook mine is to transform an unconventional resource into a cornerstone of domestic critical mineral production, with a particular emphasis on the initial production of mixed rare earth carbonates and scandium oxide.

The operational progression at Brook is a testament to the increasing urgency for domestic critical mineral supply. Historical challenges in developing rare earth projects in the U.S. have often revolved around the complex metallurgy, high capital costs, and a lack of downstream processing infrastructure. Ramaco’s approach to vertically integrate and partner with specialists like REalloys addresses these hurdles head-on, aiming to bridge the gap between extraction and refined products.

Processing Pathway: From Carbonate to Metal

The proposed collaboration outlines a clear division of labor designed to optimize the rare earth value chain. Ramaco’s role primarily involves the upstream extraction and initial processing at the Brook mine to produce mixed rare earth carbonate (MREC). MREC is a concentrated form of rare earths, but it still requires further separation into individual rare earth oxides, which are the pure forms needed for various industrial applications.

This is where REalloys Inc. steps in. Under the terms of the MOU, REalloys would undertake the crucial separation process, converting Ramaco’s MREC feedstock into various individual rare earth oxides. This separation is planned to occur at REalloys’ Saskatchewan Research Council (SRC) facility in Canada, indicating a broader North American collaboration strategy. The SRC facility is recognized for its expertise in hydrometallurgical processing and rare earth separation, providing REalloys with advanced capabilities.

Beyond rare earth carbonates, the MOU also contemplates Ramaco supplying its own separated scandium oxide from its Brook Mine critical mineral refinery. Scandium, a high-value critical mineral, is particularly prized for its ability to significantly enhance the strength and weldability of aluminum alloys, making it invaluable in aerospace, automotive, and sports equipment industries. REalloys would then perform the alloy metallization of this scandium oxide at its facility located in Euclid, Ohio. This comprehensive approach, spanning extraction to alloy production, highlights a deliberate strategy to build a robust, end-to-end domestic supply chain for these critical materials.

Economic Viability and Investment Profile

The financial underpinnings of the Brook mine project appear robust, according to a Preliminary Economic Assessment (PEA) conducted in 2025. This assessment, a crucial benchmark for evaluating the initial economic potential of a mining project, presented compelling figures. It showed a post-tax net present value (NPV) of approximately $1.2 billion, calculated at an 8% discount rate. The NPV is a common metric used by investors to estimate the profitability of a project over its lifetime, indicating that the Brook mine holds substantial economic interest.

Complementing the strong NPV, the PEA also reported an internal rate of return (IRR) of 38%. An IRR of this magnitude is considered highly attractive in the mining sector, suggesting that the project is expected to generate a very strong return on its invested capital. The total initial capital cost estimate for the project was provided as $473 million, a figure that excluded a 22% capital expenditure contingency. This capital cost, while substantial, is offset by the significant projected returns, making the Brook mine an appealing prospect for investors looking to capitalize on the growing demand for critical minerals and the strategic imperative of domestic supply.

Broader Implications for US Critical Mineral Independence

The collaboration between Ramaco and REalloys holds profound implications beyond the immediate commercial benefits. For decades, the United States has largely outsourced its rare earth and critical mineral processing capabilities, leading to significant vulnerabilities in its supply chains. These minerals are indispensable for modern technologies, including electric vehicle batteries, wind turbines, advanced electronics, and crucial defense applications such as precision-guided munitions and stealth technologies. The lack of a secure, domestic supply chain for these materials poses not only economic risks but also significant national security concerns.

This initiative directly addresses these challenges by establishing a fully integrated domestic pathway from resource extraction to refined products. By leveraging Ramaco’s unconventional rare earth deposit and REalloys’ processing expertise, the partnership aims to reduce the U.S.’s reliance on geopolitical rivals for these essential components. The emphasis on an “ex-China permanent magnet supply chain” is particularly salient, given China’s dominant position in the global rare earth market, controlling a vast majority of the world’s processing and magnet production capacity. This strategic alignment aligns perfectly with broader U.S. government objectives and policies aimed at de-risking supply chains and fostering domestic industrial resilience in critical sectors.

The Path Forward: Due Diligence and Finalization

While the signing of a non-binding MOU is a significant first step, the collaborative journey between Ramaco Resources and REalloys Inc. is now entering a critical phase of due diligence. This process will involve detailed technical, operational, and commercial assessments to ensure that the proposed partnership is robust and mutually beneficial. The ultimate goal is to finalize a definitive offtake agreement that will formalize the supply parameters, pricing mechanisms, and long-term commitments between the two entities.

The successful execution of this agreement holds the promise of establishing a secure, scalable, and domestically controlled rare earth and permanent magnet supply chain. This is not merely a commercial venture but a national endeavor to secure access to the foundational materials for the technologies of the future. As Ramaco progresses with the development of the Brook mine and REalloys continues to refine its processing capabilities, the mining industry will closely watch how this partnership evolves and contributes to strengthening America’s critical mineral independence.