Mentioned:
Two publicly traded companies have just struck a new deal for heavy rare earth elements. But, why?
What’s happening:
- Critical Metals (NASDAQ: CRML) has entered into a definitive agreement with REalloys (NASDAQ: ALOY) to supply them with 15% of the total rare earth feedstock from their Greenland based Tanbreez project
Why it matters:
- Critical Metals’ Tanbreez project is widely considered to be one of the world’s single largest rare earth projects and contains significant deposits of heavy rare earth elements including dysprosium and terbium
Going deeper:
- The new offtake agreement between REalloys and Critical Metals will run for 15 years from the first commercial delivery
- Critical Metals has publicly stated that they expect to produce 15,000 metric tonnes of rare earth concentrate annually and will deliver 15% of the monthly production to REalloys
- REalloys is currently building out the largest heavy rare earth metallization facility in North America and is focused on supplying the United States military with strategic rare earth stockpiles without any nexus to China or supply chain risks from non-allied nations
The intrigue:
- Critical Metals just recently made waves when they received approval from the Government of Greenland to increase their ownership in their Tanbreez project to 92.5%
