Critical Metals Corp (NASDAQ:CRML) saw its shares rise 10% Thursday after the company revealed a 15-year binding offtake agreement with REalloys Inc. (NASDAQ:ALOY) to supply rare earth element concentrate from the Tanbreez Project in Southern Greenland. REalloys stock increased about 7% on the news.
Under the contract, REalloys will purchase 15% of Tanbreez's annual rare earth concentrate production. The agreement provides REalloys with priority rights to those concentrate volumes that carry elevated concentrations of the heavy rare earths dysprosium and terbium. In addition, REalloys secures a Right of First Refusal on further volumes beyond the contracted 15%.
The binding deal extends the commercial relationship established in an October 2025 Letter of Intent, increasing the original framework from ten years to a 15-year term. It also incorporates two optional five-year extensions that either party can elect to activate, lengthening the potential duration of supply.
This commercial pact follows a regulatory milestone for Critical Metals: the Government of Greenland on April 17, 2026 approved an ownership increase for the company, raising its stake in the Tanbreez Project to 92.5%. Tanbreez is described in company disclosures as one of the larger heavy rare earth deposits globally, with high concentrations of dysprosium, terbium and yttrium.
Beyond those heavy rare earths, the deposit contains other elements including hafnium, cerium, lanthanum, niobium and zirconium. Those concentrated elements are linked in the agreement to pricing that will be set on an element-by-element basis, tied to international rare earth oxide benchmark prices.
Deliveries under the contract will be made FOB Tanbreez port in Southern Greenland. Commercial shipments are expected to begin only after production at Tanbreez starts, with pricing adjusted according to the specific elemental composition of each shipment.
The agreement also aligns with market and policy developments noted by the companies: U.S. defense procurement restrictions taking effect in 2027 will bar the use of Chinese-origin rare earth materials in certain defense purchases. The offtake arrangement positions Critical Metals to supply Western rare earth supply chains confronted with that procurement constraint.
REalloys is advancing a North American mine-to-magnet supply chain. Its portfolio includes the Hoidas Lake rare-earth asset in Saskatchewan and manufacturing facilities in Euclid, Ohio, which serve customers such as the Department of Defense, the Department of Energy and NASA.
Commercial mechanics and timeline
- Quantity: REalloys will take 15% of Tanbreez's annual concentrate output.
- Priority volumes: Preference for concentrate with elevated dysprosium and terbium.
- Pricing: Linked to international rare earth oxide benchmarks on an element-by-element basis.
- Delivery terms: FOB Tanbreez port in Southern Greenland.
- Timing: Commercial shipments to begin after production commences.
The announcement formalizes a long-term supply link between a Greenland heavy rare earth project and a North American rare-earth manufacturing and processing developer. The two companies have structured the contract to reflect element-specific pricing and to preserve flexibility for REalloys to increase its offtake via a Right of First Refusal.
Market reaction was immediate: Critical Metals shares jumped 10% on the report, while REalloys rose roughly 7% in the same trading session. The contract reinforces both companies' stated plans to serve Western industrial and defense-related demand for heavy rare earths.