Preliminary agreement with Critical Metals targets heavy rare earth supply for U.S. hub.
Positioning its Pentagon-backed Louisiana plant for future supply, Ucore Rare Metals Inc. has signed a non-binding agreement with Critical Metals Corp. for heavy rare earth concentrate from the Tanbreez project in Southern Greenland, the first step toward a 10-year offtake arrangement that could deliver up to 10,000 metric tons of concentrate annually beginning in 2027.
For more than a decade, Ucore has pursued a strategy to anchor a North American rare earth supply chain, shifting from early mine development at its Bokan rare earths project in Alaska toward the commercialization of RapidSX, a solvent extraction upgrade designed to separate rare earth elements faster and more efficiently than traditional methods.
This pivot drew support from the U.S. Department of Defense, which has provided more than $22 million to advance the technology from pilot validation at the company’s Kingston, Ontario demonstration facility toward installation at a Strategic Metals Complex in Alexandria, Louisiana, where initial production of separated oxides is targeted for 2026.
As the company moved closer to full commercialization, attention turned to potential feedstock sources capable of supplying heavy rare earth material.
Among the most significant is the Tanbreez project in Southern Greenland, where an early 2025 resource estimate outlined nearly 45 million metric tons of rare earth-bearing material, with roughly 27% of that content made up of the scarcer heavy elements – a proportion that places it among the largest known deposits of its kind.
Shortly after, the company published a preliminary economic assessment outlining a phased plan that would see roughly 85,000 metric tons of rare earth oxide production per year, with the goal of expanding to 425,000 tpy through modular growth.
At that scale, Tanbreez could provide the heavy rare earths required for electric vehicle motors, wind turbines, and defense technologies, with additional metals such as gallium and zirconium extending its potential relevance to semiconductors, aerospace, and nuclear systems.
With those trajectories converging, Ucore and Critical Metals have opened negotiations by signing a non-binding letter of intent for a 10-year offtake agreement that would supply heavy rare earth concentrate from Tanbreez to Ucore’s facilities in North America.
“Critical Metals Corp’s 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,” said Ucore Rare Metals CEO Pat Ryan. “Both Critical Metals Corp and Ucore share a vision to lessen China’s grip of the rare earth ecosystem in the West, and we look forward to our partnership, positioning us both to meet the growing demand for rare earths while addressing national security challenges.”
Under the terms of the agreement, Critical Metals will be expected to supply up to 10,000 metric tons of concentrate annually – about 10% of Tanbreez’s projected initial output – beginning in 2027.
Initial shipments would be processed in smaller volumes at Ucore’s Kingston demonstration facility before scaling into full production at the Louisiana complex, where the material will be refined into high-purity rare earth oxides.
“This development further validates the opportunities ahead for Critical Metals Corp and the strength of our world-class asset in Southern Greenland,” said Critical Metals CEO Tony Sage. “Securing this offtake provides Critical Metals Corp both with our first buyer and the flexibility to supply other U.S.-based rare earth facilities in the future, given the immense size of our Tanbreez deposit.”
Both companies are now working toward a definitive offtake agreement, a process still subject to due diligence, finalization of commercial terms, and customary approvals.
“We look forward to teaming up with Ucore and their exceptional team to support the development of a robust supply chain in America that isn’t reliant on China,” said Sage.