REalloys has signed a definitive 15-year offtake agreement with Critical Metals Corp. covering a portion of production from the Tanbreez rare earth project in southern Greenland. The deal is structured around monthly Phase 1 output, with REalloys receiving 15% of monthly production. The arrangement is intended to secure supply of heavy rare earth elements that China continues to dominate across key parts of the value chain.
The offtake centers on dysprosium and terbium, alongside neodymium-based products referenced in REalloys’ stated plans. These elements are used in advanced permanent magnet technologies supporting applications including defense systems, aerospace, robotics, and electric mobility. REalloys has said the partnership supports plans to begin commercial-scale production of dysprosium, terbium, and neodymium-based metals and alloys in January 2027.
Tanbreez heavy rare earth concentration and Phase 1 output
Critical Metals says the Tanbreez deposit contains an unusually high concentration of heavy rare earth elements. Heavy rare earths are expected to account for approximately 27% of total rare earth content. The project is described as fully permitted and intended to supply industrial customers in both North America and Europe.
Project ownership has also been consolidated. In April 2026, the Government of Greenland approved the transfer of the remaining 50.5% ownership stake in Tanbreez Mining Greenland A/S to Critical Metals, increasing its total ownership to 92.5%. At full Phase 1 capacity, Tanbreez is expected to produce approximately 33 million pounds of rare earth concentrate annually.
Under the offtake agreement, REalloys would receive roughly five million pounds per year, contingent on full production targets and meeting commercial specifications. The company’s entitlement is tied to monthly Phase 1 output rather than a fixed annual volume.
China’s role in magnet rare earth mining, refining and manufacturing
The International Energy Agency data cited by the companies shows China accounts for about 60% of global magnet rare earth mining production. The same dataset indicates China controls roughly 91% of refined rare earth output and about 94% of sintered permanent magnet manufacturing.
Dysprosium and terbium are highlighted as critical materials because they enhance permanent magnet performance under high-temperature conditions. The listed end uses include military aircraft, missile systems, radar installations, drones, advanced robotics, industrial automation, electric vehicle motors, and renewable energy equipment.
U.S. defense sourcing restrictions from January 2027
The timing of the agreement aligns with U.S. defense procurement requirements under DFARS 252.225-7052. Beginning on January 1, 2027, the rules will prohibit contractors from supplying certain covered materials if they originate from designated countries including China, Russia, Iran, and North Korea.
The restrictions include critical magnet materials such as samarium-cobalt magnets and neodymium-iron-boron magnets. The requirements shift sourcing decisions toward traceability across the supply chain, including mining, separation, refining, alloy production, and magnet manufacturing.
The compliance focus extends beyond upstream extraction because components sourced through multiple subcontractors can create risk if origin cannot be verified. REalloys’ stated January 2027 commercial-scale plans for dysprosium, terbium and neodymium-based metals and alloys are positioned as matching the start date for federal sourcing restrictions.
SRC Canada processing plans and Euclid Ohio operations
REalloys is also pursuing processing capacity beyond mining through operations centered in Euclid, Ohio. In Canada, it has a strategic partnership with the Saskatchewan Research Council (SRC), where officials have described the facility as a milestone for North American industry.
The SRC site is expected to become the continent’s first fully integrated commercial-scale rare earth processing and metals facility once operational. Current development plans indicate annual production targets of approximately 1.16 million pounds of neodymium-praseodymium (NdPr), 66,000 pounds of dysprosium, and 33,000 pounds of terbium.
REalloys said it will invest approximately $20.6 million, securing preferred rights to purchase up to 80% of expanded SRC production capacity. This structure is described as linking Greenland’s mineral resources with North American manufacturing capabilities through processing intermediates.
Offtake conditions and project execution milestones
The Tanbreez offtake arrangement includes conditions covering product specifications and qualification requirements. It also contains a five-year long-stop provision, allowing termination if commercial deliveries have not commenced within the agreed timeframe.
The companies cited permitting approvals, construction schedules, metallurgical performance, capital financing, equipment procurement, customer qualification processes, and operational ramp-up challenges as factors that can affect project timelines. Both REalloys and Critical Metals acknowledge these risks in their forward-looking statements.
A portion of Phase 1 output tied to long-term supply chain buildout
The agreement provides REalloys access to a 15% share of monthly Phase 1 output from Tanbreez rather than full project participation. While this does not remove U.S. reliance on foreign rare earth supply immediately, it is positioned as part of building a Western-aligned supply chain for magnet-relevant materials.
The listed industries requiring reliable access to magnet materials include aerospace, defense, electric vehicles, robotics, renewable energy equipment, advanced manufacturing and high-tech engineering. For REalloys specifically, the company describes its objective as connecting a mine-to-magnet supply chain spanning Greenland through Canada to manufacturing facilities in the United States.
The stated focus on execution timing references competition for critical minerals alongside the January 2027 federal sourcing deadline affecting covered materials under DFARS 252.225-7052.
