Critical Metals signs 15-year landmark Western rare earths offtake deal with REalloys
After increasing its stake in the Tanbreez project to 92.5% earlier this month, Nasdaq-listed Critical Metals Corporation has secured a 15-year binding offtake agreement with fellow-listed REalloys.
The agreement involves rare earth element concentrate from Tanbreez, in southern Greenland, which marks a decisive milestone to unlocking the project’s long-term commercial potential.
The offtake agreement formalises a prior letter of intent signed in October 2025, which involved a ten-year offtake period. The new agreement also includes two additional five-year extension options.
REalloys will purchase 15% of Tanbreez’s yearly rare earth concentrate production, with priority rights in respect of concentrate volumes containing elevated concentrations of heavy rare earths such as dysprosium and terbium.
In collaboration with REalloys, Critical Metals will now optimise its metallurgical processes, refine product specifications and establish efficient logistics pathways to integrate Tanbreez concentrate into downstream processing and magnet manufacturing supply chains.
The pricing will be linked to international rare earth oxide benchmarks on an element-by-element basis. Commercial shipments are expected to start following the start of production at Tanbreez.
“With global supply chains undergoing rapid realignment, the agreement positions Critical Metals at the centre of a generational shift toward secure, non-Chinese sources of critical minerals – particularly as US defence procurement restrictions come into force next year, which mandate the exclusion of Chinese-origin rare earth materials,” explains Critical Metals chairperson Tony Sage.
He adds that with the company having secured 92.5% ownership of Tanbreez and strong government backing in Greenland, coupled with an offtake agreement with REalloys, rare earths production from the project will directly support the rapidly growing demand for secure, compliant supply chains.
REalloys CEO Leonard Sternheim says by extending the offtake term, securing priority rights in respect of concentrate volumes containing elevated concentrations of the critical heavy rare earth elements dysprosium and terbium, and establishing a right of first refusal on additional volumes, the partners have transformed a letter of intent into one of the most significant long-term heavy rare earth supply commitments in the western hemisphere.
“Combined with our Saskatchewan Research Council partnership, our Hoidas Lake resource, and our Euclid, Ohio metallisation platform, REalloys now has feedstock security, processing capability, and downstream manufacturing under one integrated umbrella. This is precisely what the US requires as the 2027 defence procurement restrictions take effect."
