Oct 29 (Reuters) - Rare earths firm REalloys has

received a letter of interest from the U.S. Export-Import Bank

(EXIM) for a loan worth up to $200 million to fund processing

and magnet facilities, in what would be Washington's latest move

to bolster American production of the specialized materials.

The loan, if approved, could boost U.S. access to magnets used

in electric vehicles, cell phones, fighter jets and thousands of

other products. Those magnets are at the center of global trade

conflict as China uses them as leverage in negotiations with the

Trump administration.

In a letter dated September 18 and seen by Reuters,

privately held REalloys has met initial requirements to apply

for the $200 million EXIM loan and, if approved, would have a

15-year repayment term, longer than the company likely would

have with private financing.

EXIM, which acts as the U.S. government's export credit

agency, confirmed the letter of interest on Wednesday, the same

day REalloys announced the loan potential.

The project would need to obtain U.S. customers for its

magnets in order to receive the loan, the letter said.

The Ohio-based company, which was formed in 2023, plans to

process rare earths in Saskatchewan into metal from either mined

ore or recycled electronics. It signed an agreement earlier this

month to source ore from a Greenland mine that Critical Metals

Corp ( CRML ) aims to develop.

That metal would then be taken to Ohio, where it would be

turned into an alloy and then magnets. REalloys plans to provide

cost details next month for its two facilities.

The company's goal is to produce 10,000 metric tons per year of

magnets by 2029, roughly the same volume planned by MP Materials ( MP )

, which is receiving price support from the U.S.

government.

REalloys has not received any guarantees on price

protection, a company representative said.