Critical Metals has signed a letter of intent (LoI) for an offtake agreement with Ucore Rare Metals, a critical metals technology company.
The multi-year offtake arrangement will see Critical Metals deliver up to 10,000 tonnes per annum of rare earth concentrate from its Tanbreez Project. This accounts for roughly 10% of the project's initial expected output.
The rare earth concentrate, after undergoing hydro-metallurgical processing, will serve as a crucial feedstock for Ucore’s rare earth element (REE) processing facility in Alexandria, Louisiana, US, which broke ground in May, and another in Kingston, Ontario, Canada.
Ucore CEO Pat Ryan said: “Critical Metals Corp’s Tanbreez offers tremendous opportunities for Ucore given the significant concentration of heavy rare earths it contains, which are essential for our processing facility in Louisiana and our downstream partners.
“Both Critical Metals Corp. and Ucore share a vision to lessen China’s grip of the rare earth ecosystem in the West, and we look forward to our partnership, positioning us both to meet the growing demand for rare earths while addressing national security challenges.”
The Louisiana facility, which has secured both state government support and funding from the US Department of Défense, is designed to produce high-purity rare earth oxides.
Critical Metals anticipates that its Tanbreez Project will yield mixed rare earth carbonates or oxides suitable for this purpose.
Both parties are actively working towards finalising definitive documentation. The execution of these definitive agreements is contingent on standard conditions including the completion of due diligence, finalisation of commercial terms and securing the necessary approvals.
Critical Metals CEO and executive chairman Tony Sage said: “This development further validates the opportunities ahead for Critical Metals Corp and the strength of our world-class asset in southern Greenland.
“Securing this offtake provides Critical Metals Corp both with our first buyer and the flexibility to supply other US-based rare earth facilities in the future, given the immense size of our Tanbreez deposit. We look forward to teaming up with Ucore and their exceptional team to support the development of a robust supply chain in America that isn’t reliant on China.”
