Defense Metals (TSX-V:DEFN) has entered a non‑binding memorandum of understanding (MoU) with Korean shipbuilding giant Hanwha Ocean to explore a strategic collaboration involving future rare earth element (REE) supply.

The parties intend to evaluate a framework for a long‑term offtake agreement, under which Defense Metals could supply certain rare earth materials from its Wicheeda Project to support Hanwha’s manufacturing requirements.

The MoU also contemplates a possible strategic investment by Hanwha in Defense Metals, subject to due diligence and definitive agreements.

The multi-national collaboration reflects growing demand for secure, domestic sources of critical minerals used in defence and maritime technologies, including naval propulsion systems, advanced electronics, and communications systems.

“This MoU is an important step in advancing a made‑in‑Canada critical minerals supply chain supporting strategically important defence and maritime industries,” Defense Metals CEO Mark Tory says.

“Rare earth elements are increasingly recognised as foundational materials for next‑generation defence technologies and advanced manufacturing.”

A Hanwha spokesperson said the company is focused on ‘ensuring reliable access to critical materials’ for Canada’s evolving naval defence capabilities.

“This MOU provides a framework to evaluate a potential long‑term partnership that could support supply chain security.”

Located 80km northeast of Prince George in British Columbia, Canada, the Wicheeda Project is one of the most advanced undeveloped REE deposits in North America, with Defense Metals holding 100% of the project.

Wicheeda hosts an indicated mineral resource of 11.1 million tonnes @ 1.96% total rare earth oxides, including neodymium, praseodymium, and dysprosium — critical for electric vehicles and wind turbines.

Defense Metals is an advanced rare earth element development company focused on delivering critical metals to defence, high technology, and clean energy supply chains.

Write to JC Villarba at Mining.com.au

Images: Defense Metals