Critical Metals Corp (CRML) has signed a 15-year binding offtake agreement with REAlloys Inc. for rare earth element (REE) concentrate from its Tanbreez Project in southern Greenland, as Western companies push to diversify supply chains away from China.

According to the (IEA), China accounted for around 60 percent of global REE mining output in 2024, followed by Myanmar, Australia, and the United States. Its dominance is even greater in the separation and refining of rare earths, where it represents roughly 91 percent of global production.

Heavy rare earth reserves in Greenland

The Tanbreez Rare Earth Project is located near Qaqortoq in southern Greenland and contains large kakortokite rock deposits rich in heavy rare earth elements (HREEs). Estimates suggest the deposit contains around 4.7 billion tonnes of REE-bearing material, of which roughly 27 percent is HREEs.

These include Dysprosium, Terbium, and Yttrium – key materials used in high-performance permanent magnets for aerospace and defense systems, electric vehicles, robotics, and advanced manufacturing. The deposit also contains Hafnium, Cerium, Lanthanum, Niobium, and Zirconium, which are important for semiconductor and industrial applications.

Unlike many other major REE deposits, Tanbreez contains relatively low levels of Uranium and Thorium, making it more environmentally and politically attractive for Western supply chains. Due to its strategic significance, both Denmark and the United States have previously taken steps to discourage a potential Chinese acquisition of the project.

Tony Sage, Chairman of CRM, said, “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. With 92.5% ownership secured and strong governmental backing in Greenland, we have established full control over one of the most significant heavy rare earth deposits outside of China.”

Structure of the agreement

As per the agreement, REalloys will purchase 15 percent of Tanbreez’s annual REE concentrate production, with priority rights in respect of concentrate volumes containing elevated concentrations of the HREE like Dysprosium and Terbium, together with a Right of First Refusal over additional volumes.

The agreement follows the Government of Greenland’s April 17, 2026 approval of Critical Metals’ ownership increase to 92.5 percent in the Tanbreez Project.

This agreement also formalizes and significantly expands upon the parties’ October 2025 Letter of Intent, extending the original ten-year framework into a 15-year binding contract with two additional five-year extension options.

Structurally these 15 year duration offtake agreements are standard instruments for de-risking mine financing, since they give lenders confidence that future production has a committed buyer. For REAlloys, securing long-term feedstock from a Greenlandic source positions the company to supply separated rare earth oxides or alloys to defense-industrial customers under frameworks such as the Defense Production Act or the National Defense Authorization Act procurement preferences for domestically processed critical materials.

The pricing of the REE concentrate from this project is linked to international rare earth oxide benchmarks on an element-by-element basis. The agreement reflects an emerging trend in how national security aligned companies are approaching critical material sourcing i.e. locking in upstream supply prior to processing infrastructure ramp up.

Geopolitical context and supply chain risk

Greenland has become an intensely contested space in critical mineral diplomacy. The United States has repeatedly expressed interest in the island’s resource base, and the Danish autonomous territory has seen increased attention from mining companies seeking jurisdictions outside Chinese or Russian influence.

In this context, the strategic location (with year-round direct shipping access via deep-water fjords to the North Atlantic Ocean) and political stability (compared to Africa, where China dominates mining) of Tanbreez make it a highly favorable REE mining and extraction site forUS supply chain security.

Some of the other REE mines involved in the Western supply chain diversification include Mount Weld in Australia (the largest REE producer outside China), Nechalacho in Canada, and Mountain Pass in the US.