SGQ extends partnership with US magnet maker REAlloys

Published 21-JAN-2026 12:00 P.M.

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Our rare earths and niobium Investment St George Mining (ASX: SGQ) just updated its partnerships with US magnet maker REAlloys..

REalloys is a US magnet producer mainly for the:

US National Defense Stockpile (NDS),
US Defense Industrial Base (DIB),
US Nuclear Industrial Base (NIB),
Robotics, Electric Aviation and Critical Infrastructure Industries and
for US Partner Countries with Defense Treaties, Alliances & Agreements. (source)

REAlloys recently also received a US$200 Million Letter of Interest (LOI) EXIM financing (source)

Back in September SGQ signed an MoU with REAlloys to see if its rare earths is suitable feedstock for their supply chains.

See our take on the news here: SGQ signs strategic rare earths alliance with US defence industry magnet maker

Now the two have extended the agreement working towards finalising an offtake deal.

Given the US has minimal heavy rare earth resources (which are required for the high quality magnets, especially those in defence applications that REalloys is aiming to produce), it will need to secure feedstock from abroad.

Which explains why REAlloys is interested in SGQ’s project - the largest and highest-grade carbonatite-hosted rare earth deposit in South America…

… and the second highest grade REE deposit globally in the Western world.

SGQ’s project already has the following resources:

40.6Mt of Rare Earths at grades of 4.13% TREO (total rare earths oxide)
41.2Mt of Niobium at grades of 0.63%

Importantly, SGQ has the rare earths someone like a REAlloys would need - materials like samarium and neodymium (which SGQ’s deposit has):

(source)

The update today allows additional time for more detailed metallurgical test work and flowsheet development.

Also given REalloys is US based, this aligns with US efforts to establish secure rare earths supply chains outside of China, a topic which we have been hot on for a while now.

We mentioned this when we made our Investment in SGQ back in August 2024 and although it took a few months to show, it was clearly playing out, SGQ has been a beneficiary of this theme so far.

Read up on our latest deep dive article from earlier in the week: SGQ: Giant rare earths deposit in the USA’s “neighborhood” - how about these drill results…

What’s next for SGQ?

Drilling results 🔄

As of the most recent drilling announcement, “Assays are pending for 32 drill holes at the laboratory with the drill campaign extended indefinitely into 2026 to further test the limits of the growing footprint of the mineral system.” (source)

Drilling is still ongoing on site (24/7) - here is a picture from a recent announcement showing the night shift crew drill the asset:

(Source)

In the short term the main thing we want to see are drill results.

Ideally we see big extensions at depth and to the north/east/west of SGQ’s current JORC resource estimate, which initial results like those today have shown.

(Source)

Beyond the drilling 🔄

Over the next 12-18 months, a lot of the catalysts for SGQ could come at hard-to-forecast times:

Updates on downstream processing strategy - We want to see SGQ define its downstream rare earths strategy. We are especially looking forward to an update in relation to the US.
Work on development studies - SGQ has already commenced environmental, geotechnical and development studies, which were mentioned as continuing here and in the most recent quarterly, that negotiations with government were underway to expedite these (source).
Pilot plant trials - SGQ has signed an agreement with CEFET to jointly collaborate on a new Pilot Plant trial that will build on the prior 9 month trial from 2012-13 which successfully produced rare earth product at over 99% purity and recoveries of 86% TREO.

SGQ is also participating in the “MAGBRAS Initiative” - a program that has major automakers like Stellantis working toward building Brazil’s first permanent magnet-making facility.

Metwork and sample production - SGQ should have results from this in the pipeline with the creation of the St George Technical Centre. The main catalyst we are looking forward to is the re-starting of SGQ’s pilot plant with development of this underway with the agreement signed with CEFET to host and jointly collaborate. This will allow for product samples to be produced for potential strategics/offtake partners.
Permitting - SGQ is targeting completion for permitting by Q4-2026.