en.Wedoany.com Reported - Critical Metals (Nasdaq: CRML) has signed a definitive 15-year offtake agreement with U.S. magnet manufacturer REalloys (Nasdaq: ALOY) for the acquisition of rare earth concentrates produced from its Tanbreez project in southern Greenland. The agreement covers up to 15% of the project's annual production, with priority given to products rich in the heavy rare earth elements dysprosium and terbium, and REalloys holds a right of first refusal on additional output.
The agreement is based on a preliminary letter of intent signed by both parties in October this year, which at the time committed to a 10-year cooperation period. The Tanbreez project hosts one of the world's largest and most significant heavy rare earth deposits, with an estimated resource of 45 million tonnes, a heavy rare earth proportion of 27%, and a total rare earth oxide grade of 0.4%. Critical Metals agreed last month to acquire European Lithium's (ASX: EUR) stake in Tanbreez, a transaction expected to close in the second half of 2026, at which point it will gain full ownership of the project.
Critical Metals has outlined a phased development strategy for future production at Tanbreez, targeting initial output of approximately 85,000 tonnes of rare earth oxides by late 2028 or early 2029, subsequently scaling up to approximately 425,000 tonnes per year. To date, Critical Metals has signed offtake agreements covering approximately 75% of the project's expected rare earth concentrate production, with partners including REalloys and Ucore Rare Metals (TSXV: UCU).
Critical Metals stated that the transaction with REalloys underscores the strategic importance of Tanbreez and provides strong third-party validation of its role as a cornerstone asset in the emerging Western rare earth ecosystem. Chairman Tony Sage noted that the agreement marks a pivotal turning point for Critical Metals, clearly validating Tanbreez as a world-class, development-stage asset of global strategic significance; partnering with REalloys, a vertically integrated U.S. platform focused on defense, ensures its production will directly support the rapidly growing demand for secure, compliant supply chains. REalloys CEO Leonard Sternheim called the agreement "one of the most significant long-term heavy rare earth supply commitments in the Western Hemisphere," adding that REalloys now has feedstock security, processing capability, and downstream manufacturing under an integrated framework—precisely the capabilities the U.S. needs as defense procurement restrictions take effect in 2027.
On Thursday afternoon, Critical Metals shares rose 5% to $11.28, giving the company a valuation of approximately $1.7 billion (C$2.3 billion). REalloys shares rose 8.2% to $9.68, with a market capitalization of approximately $580 million.
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