ASX-listed European Lithium’s US-based spinout, Critical Metals, has signed a letter of intent (LoI) with Ucore Rare Metals for the offtake of rare earth concentrate from the Tanbreez project in Greenland.

Under the multi-year agreement, Critical Metals expects to supply up to 10 000 t/y of rare earth concentrate, representing about 10% of Tanbreez’s initial projected output. After hydrometallurgical processing, the concentrate will serve as feedstock for Ucore’s rare earth element processing facilities in Alexandria, Louisiana, and Kingston, Ontario.

The Louisiana facility, which broke ground in May, has received funding and support from the US Department of Defense and the state government. It will produce high-purity rare earth oxides from mixed carbonates or oxides expected to be produced at Tanbreez.

“Critical Metals’ 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,” said Ucore chairperson and CEO Pat Ryan.

“Both Critical Metals Corp and Ucore share a vision to lessen China’s grip on 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.”

European Lithium executive chairperson Tony Sage said the offtake was an important milestone for Tanbreez. “This development further validates the opportunities ahead for Critical Metals and the strength of our world-class asset in Southern Greenland. Securing this offtake provides Critical Metals 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.”

The parties are working towards definitive documentation, subject to due diligence, commercial terms, and necessary approvals.