Rare earths developer Torngat Metals has signed a ten-year offtake agreement with France-based Carester, as part of an effort to establish a reliable supply chain for heavy rare earth elements between Canada and Europe.

Under the agreement, Torngat will supply Carester’s subsidiary, Caremag – which is building a rare earths recycling and separation facility in Lacq, Pyrénées-Atlantiques, France – with a stream of partially separated heavy rare earths containing dysprosium and terbium.

The long-term arrangement will support Carester’s production goals while allowing Torngat to optimise its separation processes as it begins operations. The deal also anchors a broader partnership aimed at shared production and collaboration in training, construction and commissioning.

“We are proud to announce the signing of this first offtake agreement and to strengthen our collaboration with a long-term partner who shares our commitment to securing a reliable supply of rare earth elements – materials essential to our economy and the energy transition. Together, we are building a more responsible industry,” said Torngat Metals CEO Yves Leduc.

“This agreement with Torngat Metals marks a major step toward securing high-quality feedstock for Caremag while advancing our mission to make rare earths separation more efficient and environmentally responsible. By combining our expertise, we are helping shape a resilient supply chain for Europe and beyond,” said Carester president and founder Frédéric Carencotte.

The partnership builds on a collaboration that began in 2023, when Carester began providing technical expertise and proprietary knowledge to support Torngat’s plant design and rare earths separation development.

Canadian Minister of Energy and Natural Resources Tim Hodgson welcomed the agreement, noting that it aligned with Canada’s broader commitment to strengthening critical minerals cooperation through the G7 Critical Minerals Production Alliance.

“Canada is pleased to see Torngat Metals and Carester's partnership to advance critical minerals development. Through the Critical Minerals Production Alliance, we are working with trusted partners to deploy sovereign tools, mobilise investments and financing, and secure offtake arrangements to accelerate the development of secure, resilient critical minerals supply chains. These minerals will position Canada as a trusted supplier to our allies,” said Hodgson.

“Canada's endorsement of Torngat Metals and Carester's collaboration reflects our commitment to responsible resource development and international collaboration. By advancing projects that align with the goals of the Critical Minerals Production Alliance, we are helping to build resilient supply chains, drive innovation, and bolster Canada's position as a trusted global partner in the continued development of more clean energy and advanced manufacturing,” added Parliamentary Secretary Claude Guay.

The deal represents Torngat Metals’ first formal offtake arrangement and paves the way for further agreements covering separated rare earths essential for permanent magnet production — including dysprosium, terbium, and neodymium/praseodymium oxides.

Torngat Metals is developing the Strange Lake rare earths project in Quebec and Newfoundland and Labrador. The company aims to become a major producer of heavy rare earths used in high-technology and low-carbon applications, while building partnerships with Indigenous and local communities and advancing environmentally responsible extraction.