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| Ramaco Resources |
Ramaco Resources recently signed a non-binding memorandum of understanding (MoU) with REalloys Inc. to bolster the US domestic rare earth supply chain. This strategic partnership aims to leverage Ramaco’s Brook mine in Wyoming, which holds the nation’s largest unconventional deposit of rare earth elements sourced from coal ore. Consequently, both companies will conduct due diligence to finalize an offtake agreement for mixed rare earth carbonate (MREC) and scandium oxide. This collaboration represents a critical step toward creating a resilient, non-Chinese ecosystem for permanent magnet production.
Integrating Rare Earth Production and Processing
The agreement outlines a clear division of labor to optimize the US domestic rare earth supply chain. Ramaco Resources plans to supply MREC feedstock directly from its Brook mine operations. Meanwhile, REalloys will process this material into individual rare earth oxides at its Saskatchewan Research Council (SRC) facility in Canada. Furthermore, the partnership includes the supply of scandium oxide for alloy metallization at REalloys’ Ohio facility. Therefore, this vertical integration ensures that critical minerals move efficiently from extraction to high-value industrial application.
Economic Potential of the Brook Mine
The Brook mine project demonstrates significant commercial viability for the future of the US domestic rare earth supply chain. A 2025 preliminary economic assessment indicates a post-tax net present value of approximately $1.2 billion. Moreover, the project boasts an impressive internal rate of return (IRR) of 38%. Although initial capital costs reach $473 million, the potential to scale production at America's first new rare earth mine in over 70 years remains substantial. As a result, investors view this development as a foundational pillar for establishing long-term North American mineral independence.
ScrapInsight Commentary
The partnership between Ramaco and REalloys signals a maturing shift in the U.S. critical minerals sector, moving beyond simple extraction toward integrated, high-value processing.
This collaboration effectively de-risks the Brook mine project by securing a clear off-take path, which is essential for attracting the capital necessary for full-scale facility construction.
We expect similar mid-stream partnerships to increase as domestic firms prioritize localizing the permanent magnet value chain to mitigate geopolitical supply vulnerabilities.
