Critical Metals–REalloys 15-year offtake: project scale and supply risk notes for miners
Reviewed by Tom Sullivan
First reported on MINING.com
30 Second Briefing
Critical Metals has signed a 15-year offtake agreement with US magnet producer REalloys covering up to 15% of rare earth concentrate output from the Tanbreez project in southern Greenland, with priority on heavy rare earths dysprosium and terbium and rights of first refusal on extra volumes. Tanbreez hosts about 45 million tonnes at 0.4% total rare earth oxides with an estimated 27% heavy REE content, and is planned to ramp from roughly 85,000 t REO by 2028–29 to about 425,000 t/y. With this deal and an existing Ucore Rare Metals commitment, around 75% of expected concentrate production is now under offtake, giving REalloys long-term feedstock ahead of US 2027 defence procurement restrictions.
Technical Brief
- Definitive 15-year offtake contract supersedes the earlier 10-year letter of intent signed in October.
- Tanbreez resource quoted as ~45 Mt at 0.4% TREO with ~27% heavy REE proportion.
- Greenland government recently approved the mining licence transfer, enabling Critical Metals to consolidate 100% project ownership.
- Full ownership followed an $835 million transaction to buy out former shareholder European Lithium.
- Phased development plan targets initial REO output by late 2028 or early 2029 before major expansion.
- Offtake coverage of ~75% of planned concentrate output now includes both REalloys and Ucore Rare Metals.
- REalloys is described as a US defence-focused, vertically integrated magnet and rare earth processing platform.
- Market reaction: Critical Metals’ capitalisation rose to ~$1.64 billion; REalloys to ~$550.4 million post-announcement.
Our Take
The 15‑year offtake for heavy rare earth concentrates from Tanbreez comes shortly after Greenland approved the indirect transfer of the Tanbreez mining licence (17 April 2026 item), signalling that Critical Metals is rapidly moving from permitting risk into market‑locking and financing‑ready territory.
With Tanbreez hosting about 45 Mt at 0.4% TREO and 27% heavy REE content, this offtake effectively underpins one of the few Western‑hemisphere heavy rare earth orebodies in our database with both scale and defined downstream demand, which is likely to be attractive for export credit agencies already referenced alongside Critical Metals in earlier coverage.
The planned all‑stock acquisition of European Lithium to consolidate 100% of Tanbreez (27 April 2026 item) means REalloys’ offtake is being tied into a corporate structure that is still evolving, so counterparties and lenders will be watching execution risk on that M&A as closely as the technical delivery at the southern Greenland site.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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