REalloys (NASDAQ: ALOY) has locked in a 15-year offtake agreement with Critical Metals Corp. (NASDAQ: CRML), covering 15% of Phase 1 production from the Tanbreez project in southern Greenland. The project is one of the largest known heavy rare earth deposits globally, containing Dysprosium and Terbium.
The U.S. is racing to build a rare earth supply chain ahead of the Pentagon’s 2027 ban on Chinese-origin materials. This deal secures long-term supply for REalloys from a non-Chinese source.
Political context comes two weeks after President Trump’s summit in Beijing with Xi Jinping, which yielded a modest tactical detente and some multibillion-dollar deals. China continues to apply pressure on Washington’s rare earth supply chain.
While Washington seeks to diversify supply, China remains the dominant processor. The Tanbreez deal reduces but does not eliminate U.S. reliance on Chinese rare earths.
Counterargument: The 15% offtake from Phase 1 production is a limited volume that will not replace China’s market share. Scaling up Greenland mining faces permitting, environmental, and infrastructure hurdles.