Critical Metals secures 15-year offtake from REalloys

Critical Metals (Nasdaq: CRML) has secured a long-term offtake partnership with United States-based magnet manufacturer REalloys (Nasdaq: ALOY) for the production of rare earth concentrates from its Tanbreez project in southern Greenland.

The two sides have executed a definitive agreement for a 15-year offtake partnership, covering up to 15% of the project’s annual production, REalloys said Thursday. Priority rights will be given to products with high concentrations of heavy rare earths dysprosium and terbium. REalloys would have the right of first refusal over additional volumes.

The agreement builds on the initial letter of intent for a 10-year commitment that the parties signed in October.

Tanbreez is host to one of the largest and most significant heavy rare earth (REE) deposits globally, with an estimated 27% heavy REE concentration contained in a 45-million-tonne resource grading 0.4% total rare earth oxides.

Critical Metals agreed last month to buy out European Lithium’s stake (ASX: EUR) in Tanbreez, which would give it full ownership of the project. The transaction is expected to be completed in the second half of 2026.

Tanbreez’s future rare earth production is expected to follow a phased development strategy, with the company targeting initial production of around 85,000 tonnes of rare earth oxides by late 2028 or early 2029, followed by an expansion to about 425,000 tonnes per annum.

To date, Critical Metals has secured offtake deals covering about 75% of the rare earth concentrates expected from the project, including commitments from REalloys and Ucore Rare Metals (TSXV: UCU).

Expanded offtake

The deal with REalloys underscores the strategic importance of Tanbreez and provides powerful third-party validation of its role as a cornerstone asset in the emerging Western rare earth ecosystem, Critical Metals 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,” said chairman Tony Sage. “Partnering with REalloys — a US-based, defense-focused, vertically integrated platform — ensures that our production will directly support the rapidly growing demand for secure, compliant supply chains.”

Leonard Sternheim, CEO of REalloys, called the deal “one of the most significant long-term heavy rare earth supply commitments in the Western hemisphere.”

“REalloys now has feedstock security, processing capability, and downstream manufacturing under one integrated umbrella. This is precisely what the United States requires as the 2027 defense procurement restrictions take effect,” he added.

Shares of Critical Metals rose 5% to $11.28 Thursday afternoon, valuing the company at about $1.7 billion (C$2.3 billion). REalloys jumped 8.2% to $9.68 for a market capitalization of about $580 million.