Critical Metals Surges Over 17% on Strategic US Offtake Agreement
The deal with REalloys marks the second major US agreement for Critical Metals' Greenland rare earths project, aiming to build a non-Chinese supply chain.
Shares of Critical Metals Corp. (NASDAQ: CRML) surged more than 17% after the company announced a significant offtake agreement with REalloys Inc., a U.S.-based rare earth company. The deal represents a major step in de-risking Critical Metals' Tanbreez project in Greenland and building a strategic supply chain for critical minerals outside of China.
The company signed a Letter of Intent (LOI) for a multi-year agreement to supply REalloys with 15% of the annual rare earth concentrate produced at Tanbreez. This is the , bringing the total committed production for American customers to approximately 25% and signaling strong North American demand for the project's output.
The partnership is strategically vital for both companies, which are focused on . REalloys specializes in processing rare earth materials for high-performance magnets used in "U.S. Protected Markets," including the U.S. National Defense Stockpile and other critical infrastructure industries.
Tony Sage, CEO of Critical Metals, emphasized the deal's importance, stating it marks a crucial entry into the U.S. market. The Tanbreez project in Southern Greenland is positioned to become a key supplier, recognized as . Its strategic location offers year-round deep-water access, facilitating logistics to North America and Europe.
Investor confidence was bolstered by the news, with trading volume for CRML shares climbing well above average. The agreement follows other positive developments, including a letter of interest from the U.S. Export-Import Bank for a potential loan of up to $120 million to help fund the mine's development. While the LOI is subject to due diligence and final commercial terms, it provides a clear path to market for a significant portion of Tanbreez's future production.