REalloys (NASDAQ: ALOY) has locked in long-term supply from one of the largest known heavy rare earth deposits in the world, as Washington moves to build a rare earth supply chain independent of Chinese-origin materials.
The agreement comes as the Pentagon prepares to enforce a 2027 ban on Chinese-origin rare earth materials, placing significant pressure on U.S. companies to secure alternative sources.
REalloys announced last Thursday that it has signed a definitive 15-year offtake agreement with Critical Metals Corp. (NASDAQ: CRML), marking a significant step in domestic supply chain development.
The deal covers 15% of Phase 1 production from the Tanbreez project, a massive heavy rare earth deposit located in southern Greenland.
Tanbreez is recognized as one of the largest known heavy rare earth deposits in the world, giving the agreement considerable strategic weight.
The deposit contains Dysprosium and Terbium, two heavy rare earth elements that are critical to defense and advanced manufacturing applications.
Washington has been racing to establish a rare earth supply chain capable of withstanding the upcoming Pentagon ban on Chinese-origin materials set to take effect in 2027.
Securing long-term offtake agreements with non-Chinese sources has become a priority for U.S. companies operating in the defense supply chain.
The Tanbreez project in southern Greenland represents a significant non-Chinese source of heavy rare earths at a time when supply chain security has become a top geopolitical concern.
The 15-year duration of the agreement between REalloys and Critical Metals Corp. signals a long-term commitment to developing rare earth supply outside of Chinese influence.
