U.S. company REalloys has secured a 15-year offtake agreement for heavy rare-earth elements from the Tanbreez project in Greenland [1].
The deal arrives as the U.S. government seeks to diversify its supply of critical minerals. This move is timed to bolster domestic stockpiles before the U.S. Department of Defense implements a planned ban on Chinese rare-earth imports in 2027 [1].
Under the terms of the agreement, REalloys will receive a steady supply of heavy rare-earth elements, including dysprosium and terbium [1]. These materials are essential for high-strength magnets used in electric vehicle motors, and advanced defense systems. The contract is valued at $35 million [2].
The agreement will span 15 years [1], with the delivery of materials beginning once the project reaches its ramp-up phase. The Tanbreez project represents a significant deposit of these materials, which are often more difficult to source than light rare-earths.
Securing these minerals outside of China is a strategic priority for the U.S. government. By establishing a long-term partnership with the Greenland site, REalloys intends to provide a stable pipeline of materials that are currently dominated by Chinese production [1].
“REalloys has secured a 15-year offtake agreement for heavy rare-earth elements from the Tanbreez project in Greenland.”
This agreement underscores the geopolitical urgency of the 'de-risking' strategy regarding critical minerals. By locking in a 15-year supply from Greenland, the U.S. is attempting to mitigate the economic and military risks associated with a total pivot away from Chinese rare-earth imports by 2027.
