US rare earth deal ignites rally as west strives for a China-free supply

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New York-based Critical Metals Corp witnessed a sharp market rally on Thursday after securing a long-term rare earth supply agreement with REalloys, reinforcing Western efforts to build an alternative supply chain free from dependence on China. Interestingly, the announcement of a binding 15-year offtake deal with REalloys Incorporated for concentrate supply from the Tanbreez rare earth project in Southern Greenland resulted in the shares of Critical Metals Corp soaring 10 per cent. REalloys shares also climbed 7 per cent after the development.

Under the agreement, REalloys will secure 15 per cent of Tanbreez’s annual rare earth concentrate output, including priority access to volumes rich in heavy rare earth elements such as dysprosium and terbium. The deal also grants REalloys a Right of First Refusal on additional material supply and includes two optional five-year extensions. 

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A closer look at Tanbreez

The agreement follows the Greenland government’s approval in April 2026 allowing Critical Metals to raise its ownership in the Tanbreez project to 92.5 per cent. The project is regarded as one of the world’s largest heavy rare earth deposits and builds upon the company’s earlier 10-year Letter of Intent signed between the two companies in October 2025.

Tanbreez hosts significant reserves of heavy rare earth elements such as dysprosium, terbium and yttrium. These are essential for high-performance permanent magnets used in electric vehicles, defence systems, wind turbines and advanced manufacturing technologies. The deposit also contains strategic minerals including hafnium, niobium, zirconium, cerium and lanthanum.

Strategic significance of the deal

The latest deal arrives at a critical hour as the US gears up to tighten defence procurement rules from 2027, effectively restricting the use of Chinese-origin rare earth materials in strategic industries.

Commercial shipments from Tanbreez are expected to begin once production starts, with deliveries planned on a Free on Board (FOB) basis from the project’s Southern Greenland port. Pricing will remain linked to global rare earth oxide benchmarks on an element-specific basis.

Meanwhile, REalloys continues to advance its North American mine-to-magnet supply chain strategy through its Hoidas Lake rare earth project in Saskatchewan and manufacturing operations in Ohio, supplying institutions including the US Department of Defense, Department of Energy and NASA. 

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