Critical Metals, Ucore ink ten-year offtake deal to supply heavy rare earths to US plant

[Redator]

Critical Metals Corp. (Nasdaq: CRML) has signed a ten-year offtake agreement to supply heavy rare earth concentrate Ucore Rare Metal’s US processing facility. 

Under the terms, Critical Metals expects to supply up to 10,000 metric tons of the concentrate annually from its Tanbreez project in Greenland, ranked one of the biggest rare earth projects in the world.  

The deal connects the massive rare earth project with Ucore’s Department of Defense (DoD) funded processing facility in Louisiana—a key step toward reducing US reliance on foreign sources for heavy rare earths.  

The concentrate, the company said, will be providing critical feedstock for high-purity rare earth oxides used in advanced tech and defense applications. 

After hydro-metallurgical processing, the concentrate will be used as feedstock for Ucore’s rare earth element processing facility, which broke ground in May, in Alexandria, Louisiana and at Ucore’s facility in Kingston, Ontario.  

The Louisiana facility will produce high-purity rare earth oxides from mixed rare earth carbonates or oxides, which Critical Metals expects to produce at Tanbreez. It aims to produce 2,000 tonnes per annum (tpa) of high-purity rare earth oxides next year, with the capacity expected to be scaled up to 7,500 tpa in 2028, the company said. 

“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,” Ucore CEO Pat Ryan said in a statement.  

“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.” 

“Securing this offtake provides Critical Metals Corp both with our first buyer and the flexibility to supply other US based rare earth facilities in the future, given the immense size of our Tanbreez deposit,” Critical Metals CEO Tony Sage added.   

The deal was brokered by GreenMet, a Washington-based advisory firm acting as a conduit between private capital, government and critical minerals industry.  

In an email to MINING.com, GreenMet CEO Drew Horn called the agreement “a landmark achievement and a powerful example of strategic partnerships building a resilient, domestic supply chain.”