(Reuters) -Critical Metals on Tuesday said it has signed a 10-year agreement to supply heavy rare earth concentrate to Ucore Rare Metal’s U.S. government-funded Louisiana processing facility.
The development-stage mining company expects to supply up to 10,000 metric tons of the concentrate annually from its Tanbreez Project in Greenland, which represents about 10% of the project’s initial projected production.
The agreement comes as the U.S. looks to boost domestic production of critical minerals to offset China’s near-total control of the sector.
Ucore’s Louisiana facility had received $18.4 million from U.S. Defense Department for the first of four phases of construction.
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, according to the company.
Rare earths are a group of 17 metals used to make magnets that turn power into motion. China halted exports in March as part of a trade spat with Trump that showed some signs of easing in June, even as the broader tensions underscored the need for greater U.S. output.
Critical Metals had received a letter of interest in June from the U.S. Export-Import Bank (EXIM) for a loan worth up to $120 million to fund the Tanbreez mine, making it the Trump administration’s first overseas investment in a mining project.
The Tanbreez project is expected to cost $290 million, and is expected to produce 85,000 metric tons per year of a rare earths concentrate and two minor metals, once fully operational.
(Reporting by Pooja Menon in Bengaluru; Editing by Leroy Leo)
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