Ucore, Critical Metals sign 10‑year rare earths deal

Critical Metals (Nasdaq: CRML) has agreed to supply heavy rare earth concentrate from its Tanbreez project in Greenland to Ucore Rare Metals’ (TSXV: UCU; US-OTC: UURAF) new processing plant in Louisiana under a 10‑year offtake.

Critical Metals expects to ship up to 10,000 tonnes a year of concentrate from Tanbreez, ranked one of the biggest rare earth projects in the world.

The pact ties the project to Ucore’s Department of Defense‑backed separation facility in Alexandria, La., which broke ground in May. First production of high‑purity rare earth oxides is targeted next year and a planned ramp‑up to about 7,500 tonnes a year in 2028. Ucore also operates a demonstration facility in Kingston, Ont.

“Critical Metals’ Tanbreez offers tremendous opportunities for Ucore given the significant concentration of heavy rare earths it contains, which are essential for our processing facility in Louisiana and our downstream partners,” Ucore CEO Pat Ryan said in a news release this week.

Critical Metals shares traded in New York closed 5¢ lower on Thursday at $6.46 apiece, giving it a market capitalization of $637 million. Ucore’s Toronto-traded shares closed C16¢ higher at C$4.01, giving it a market cap of C$348 million.

World-ranking

The agreement links one of the world’s largest undeveloped rare earth deposits to a U.S. separation plant, part of efforts to build a domestic supply chain for heavy rare earths used in advanced manufacturing and defence, and to reduce reliance on Chinese processing.

The concentrate will provide feedstock for high‑purity rare earth oxides used in technology and defence applications, the companies said. After hydrometallurgical processing, the material is to be converted into mixed carbonates or oxides for Ucore’s separation circuits in Louisiana and at its Kingston facility.

“The offtake provides Critical Metals with our first buyer and flexibility to supply other U.S.‑based rare earth facilities in future, given the scale of Tanbreez,” Critical Metals CEO Tony Sage said.

The deal was brokered by Washington‑based advisory firm GreenMet. In an email to Mining.com, GreenMet CEO Drew Horn called the agreement “a landmark achievement and a powerful example of strategic partnerships building a resilient, domestic supply chain.”