Key Takeaways
Critical Metals Corp. (NASDAQ: CRML) will supply U.S.-based REalloys Inc. (NASDAQ: ALOY) with heavy rare earth concentrate for 15 years from its Tanbreez project in Greenland, securing a key feedstock source for American defense and industrial supply chains.
"This agreement marks a pivotal inflection point for Critical Metals and unequivocally validates Tanbreez as a world-class, development-stage asset of global strategic importance," Tony Sage, Chairman of Critical Metals, said.
The definitive offtake agreement covers 15% of the monthly production from Phase 1 of the Tanbreez mine, which has a disclosed nameplate capacity of up to 15,000 metric tons per year. The deal gives REalloys priority rights to concentrate rich in dysprosium and terbium—two heavy rare earth elements essential for high-temperature permanent magnets used in defense systems and electric vehicles. Deliveries will be priced using a market-referenced formula.
The agreement is a foundational component of REalloys' "mine-to-magnet" strategy to build a U.S.-centric rare earth supply chain ahead of federal procurement restrictions on Chinese materials that take effect on January 1, 2027. Critical Metals recently consolidated its ownership of the Tanbreez project to 92.5%, an asset recognized as one of the world’s largest heavy rare earth deposits.
The deal provides REalloys with a long-term feedstock source that complements its existing network of supply and processing relationships, including its own Hoidas Lake deposit in Canada and a processing partnership with the Saskatchewan Research Council.
"By extending the term, securing priority rights... and establishing a Right of First Refusal on additional volumes, we have transformed a letter of intent into one of the most significant long-term heavy rare earth supply commitments in the Western hemisphere," said Leonard Sternheim, CEO of REalloys.
The agreement includes a five-year long stop date, allowing either party to terminate if commercial delivery has not commenced within that period. For Critical Metals, the offtake agreement with a U.S. downstream partner helps de-risk the Tanbreez project as it moves toward a production start.
This article is for informational purposes only and does not constitute investment advice.
