The United States’ effort to rebuild secure rare earth supply chains has taken a significant step forward, moving beyond policy discussions and into long-term commercial agreements. In a development closely watched by defense planners and industrial strategists, REalloys has signed a definitive 15-year offtake agreement with Critical Metals Corp. for a portion of production from the Tanbreez rare earth project in southern Greenland.
The agreement grants REalloys access to 15% of monthly Phase 1 output, positioning the company within one of the most strategically important rare earth developments in the Western world. More importantly, the deal focuses on materials that remain among the most difficult for Western economies to secure: the heavy rare earth elements that China continues to dominate.
At the center of the agreement are dysprosium and terbium, two relatively obscure elements that play an outsized role in modern technology, defense systems, aerospace applications, robotics, and electric mobility. Without reliable access to these materials, the production of advanced permanent magnets—and the industries that depend on them—faces significant risk.
Why Greenland Is Emerging as a Strategic Rare Earth Hub
The Tanbreez project is being positioned as far more than another mining operation. According to Critical Metals, the Greenland deposit contains an unusually high concentration of heavy rare earth elements, with these materials expected to account for approximately 27% of total rare earth content. This characteristic distinguishes Tanbreez from many other rare earth projects globally, where heavy rare earth concentrations are often limited.
The project is also considered one of the most advanced rare earth developments aligned with Western supply chains. Fully permitted and strategically located, Tanbreez is intended to serve industrial customers in both North America and Europe, helping reduce reliance on Chinese-controlled supply networks.
Ownership of the project has also become clearer. In April 2026, the Government of Greenland approved the transfer of the remaining 50.5% ownership stake in Tanbreez Mining Greenland A/S to Critical Metals, increasing the company’s total ownership to 92.5%. This consolidation provides greater certainty at a time when governments across the United States and Europe are actively seeking alternatives to Chinese processing and refining capacity.
At full Phase 1 production capacity, Tanbreez is expected to produce approximately 33 million pounds of rare earth concentrate annually. Under the agreement, REalloys would receive roughly five million pounds per year, assuming full production targets are achieved and all commercial specifications are met.
The Rare Earth Elements China Still Dominates
Rare earth minerals often receive less public attention than commodities such as copper, lithium, nickel, or gold, yet they are among the most strategically important materials in the global economy. Their importance stems largely from their use in the production of high-performance permanent magnets that power critical technologies ranging from electric motors and industrial machinery to missile guidance systems and advanced radar platforms. The challenge is that China continues to dominate nearly every stage of the rare earth value chain.
According to data from the International Energy Agency, China accounted for approximately:
- 60% of global magnet rare earth mining production
- 91% of refined rare earth output
- 94% of sintered permanent magnet manufacturing
This concentration has become a growing concern for policymakers, defense agencies, and industrial manufacturers seeking more secure and diversified supply chains.
Among the most critical materials are dysprosium and terbium, which enhance the performance of permanent magnets under high-temperature conditions.
These elements are essential in applications where reliability is non-negotiable, including:
- Military aircraft
- Missile systems
- Radar installations
- Drones
- Advanced robotics
- Industrial automation
- Electric vehicle motors
- Renewable energy equipment
In these environments, even minor performance degradation can have major operational consequences.
The Pentagon’s 2027 Deadline Is Driving Urgency
The strategic importance of rare earth supply chains is no longer merely theoretical. Beginning on January 1, 2027, new U.S. defense procurement requirements under DFARS 252.225-7052 will prohibit contractors from supplying certain covered materials if they originate from designated countries, including China, Russia, Iran, and North Korea.
The restrictions specifically include critical magnet materials such as:
- Samarium-cobalt magnets
- Neodymium-iron-boron magnets
These rules fundamentally change how defense contractors approach sourcing decisions. The key question is no longer simply where raw materials are mined. Instead, companies must demonstrate traceability across the entire supply chain, including mining, separation, refining, alloy production, and magnet manufacturing.
Even a small component sourced through multiple subcontractors can create compliance risks if its origin cannot be verified. This is why the Tanbreez agreement carries strategic significance far beyond a conventional mining offtake arrangement.
REalloys has stated that the partnership supports its plans to begin commercial-scale production of dysprosium, terbium, and neodymium-based metals and alloys in January 2027—precisely when federal sourcing restrictions are scheduled to take effect.
Building the Missing Middle of the Supply Chain
Mining is only the first step in creating a secure rare earth supply chain. The greatest challenge often lies in what industry experts describe as the “middle” of the value chain—the complex processes required to separate rare earth oxides, convert them into metals and alloys, and ultimately manufacture magnets that meet demanding industrial specifications. This is the segment where China has historically maintained its strongest competitive advantage.
REalloys is attempting to address this bottleneck through operations centered in Euclid, Ohio, combined with a strategic partnership with the Saskatchewan Research Council (SRC) in Canada.
Officials in Saskatchewan have described the SRC facility as a potential milestone for North American industry. Once fully operational, it is expected to become the continent’s first fully integrated commercial-scale rare earth processing and metals facility.
The latest development plans indicate annual production targets of approximately:
- 1.16 million pounds of neodymium-praseodymium (NdPr)
- 66,000 pounds of dysprosium
- 33,000 pounds of terbium
In exchange for investment commitments totaling approximately $20.6 million, REalloys has secured preferred rights to purchase up to 80% of expanded SRC production capacity. This arrangement creates a potential processing bridge connecting Greenland’s mineral resources with North American manufacturing capabilities.
Challenges Still Remain
Despite the strategic importance of the agreement, significant milestones must still be achieved before the supply chain becomes fully operational.
The Tanbreez offtake arrangement contains several conditions, including product specifications, qualification requirements, and a five-year long-stop provision allowing termination if commercial deliveries have not commenced within the agreed timeframe.
These conditions highlight an important reality of the mining industry: successful supply chains are built through execution, not announcements.
A range of factors can affect project timelines, including:
- Permitting approvals
- Construction schedules
- Metallurgical performance
- Capital financing
- Equipment procurement
- Customer qualification processes
- Operational ramp-up challenges
Like most mining companies, both REalloys and Critical Metals acknowledge these risks in their forward-looking statements.
A Small Deal with Major Strategic Implications
While a 15% share of Phase 1 production will not eliminate U.S. dependence on foreign rare earth supply overnight, the agreement represents another important building block in the creation of a Western-aligned rare earth ecosystem.
The pressure to establish alternative supply chains extends far beyond the mining sector.
Industries including aerospace, defense, electric vehicles, robotics, renewable energy, advanced manufacturing, and high-tech engineering all require reliable access to magnet materials. The debate is no longer about whether rare earths are strategically important. That question has already been answered.
The challenge now is whether Western producers can scale mining, processing, refining, and magnet manufacturing capacity quickly enough to meet growing demand while reducing dependence on China. Greenland is increasingly becoming a central part of that effort.
For REalloys, the Tanbreez agreement represents a bold attempt to connect a mine-to-magnet supply chain stretching from Greenland through Canada to manufacturing facilities in the United States. Achieving that vision will require substantial investment, operational discipline, and timely execution. But with the Pentagon’s sourcing deadline approaching and global competition for critical minerals intensifying, it is a race that Washington, industry leaders, and defense planners can no longer afford to lose.
