By Genope Media - NUUK, Greenland – In a move that underscores the strategic importance of rare earth elements to Western supply chains, Critical Metals Corp. has finalized a landmark 10-year supply agreement to deliver up to 10,000 metric tons of heavy rare earth concentrate annually from its Tanbreez project in Greenland to a U.S. government-supported processing facility in Louisiana. The agreement marks one of the most significant transatlantic resource partnerships in recent years, aimed at reducing reliance on China, which currently dominates the global rare earths market with over 80% of processing capacity.
Under the deal, Tanbreez will provide concentrates rich in dysprosium, terbium, and yttrium—elements essential for permanent magnets used in electric vehicles (EVs), wind turbines, advanced defense systems, and next-generation electronics. The U.S. facility, backed by federal funding to bolster domestic processing capacity, is expected to refine the material into high-purity oxides for downstream manufacturing. This directly aligns with Washington’s critical minerals strategy, which prioritizes diversifying supply chains and securing long-term access to rare earths for both civilian and defense applications. "This agreement positions Greenland as a reliable partner in the global effort to build secure, transparent, and sustainable rare earth supply chains,” said a Critical Metals spokesperson.
The Tanbreez deposit, located in southern Greenland, is considered one of the largest sources of heavy rare earth elements outside of China. Its unique geology provides a concentration of elements that are particularly scarce, making it a critical alternative to global buyers seeking diversification. While light rare earths (such as cerium and lanthanum) are more abundant, heavy rare earths like dysprosium and terbium are far rarer and indispensable to high-temperature permanent magnets used in EV motors and renewable power generation. Industry analysts suggest that Tanbreez could become a cornerstone supplier for Western markets, especially as EV adoption accelerates and offshore wind capacity expands.
The Greenland-U.S. deal highlights several key industry trends:
The Tanbreez supply agreement is expected to catalyze further investment in Greenland’s mining sector, while strengthening U.S. domestic processing capabilities. For Critical Metals, the deal provides revenue stability and long-term market access, while for the U.S., it represents a strategic step toward de-risking supply chains for critical technologies. As the rare earths market tightens and demand accelerates, this 10-year partnership could emerge as a blueprint for transatlantic cooperation in the mining sector.
