Kazakhstan's AltynGroup and the North American company REAlloys have entered into a strategic partnership. Under this agreement, rare earth resources from Kazakhstan will be integrated into the manufacturing chain of the United States, as reported by Exclusive.kz.
According to information from FBRC, this agreement includes a 10-year framework model for the supply of rare earth materials, as well as a non-binding intention to invest in the expansion of the production of metals and alloys that are in demand, including in the US defense industry.
Although the agreements are not formally binding, they define the strategic direction of cooperation between the partners.
As part of the partnership, there are plans to explore and attract mining facilities in Kazakhstan, process rare earth oxides and concentrates, and subsequently produce metals and alloys for inclusion in the US manufacturing chain. The REAlloys manufacturing platform, which is positioned as fully North American, will be a key element of this process.
Representatives of REAlloys note that the project is aimed at creating a sustainable supply channel for both heavy and light rare earth elements, such as dysprosium and terbium, which are critically important for high technologies and the defense sector. The company emphasizes that this is not just a raw material exchange, but also high value-added processing.
One possible source of raw materials is the Kokbulak project, a concession area of about 127 thousand square kilometers in the Karaganda and Kostanay regions. According to the publication, the iron ore reserves in this area exceed 350 million tons, and the processing tails contain rare earth elements of commercial interest.
REAlloys already has assets in North America, including projects in the Canadian province of Saskatchewan and manufacturing facilities in Ohio. This, according to analysts, will allow for the integration of Kazakhstani raw materials into the existing infrastructure without the need to create a new chain from scratch.
It should be noted that the new cooperation differs from previous practices, where rare earth raw materials were exported only in the form of concentrates. Now, processing and metallization will occur directly in the USA, which will ensure control over the most critical stages of production and reduce dependence on foreign processors.
Leonard Sternheim, CEO of REAlloys, emphasized that the partnership is seen as a combination of economic interests and US national security objectives, as well as an opportunity to involve one of the most technologically advanced private players in Central Asia in strategic supply chains.
AltynGroup's investment intentions include participation 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.
Thus, this partnership is viewed as a step towards creating a sustainable North American supply chain for the production of rare earth metals and alloys, which should reduce the US dependence on external markets and processors, especially from Asia.
