US Defense-Backed Ucore Partners with Critical Metals to Challenge China’s Rare Earth Dominance
Critical Metals Corp has signed a multi-year letter of intent to supply rare earth concentrate from its Greenland project to Ucore Rare Metals’ US Department of Defense-backed processing facility, aiming to build a China-independent supply chain.
- Multi-year LOI signed between Critical Metals and Ucore Rare Metals
- Up to 10,000 metric tons annually from Tanbreez Rare Earth Project in Greenland
- Supplies feedstock to Ucore’s Louisiana rare earth processing plant
- Partnership aims to reduce Western reliance on China for rare earths
- Definitive agreement pending due diligence and approvals
Strategic Partnership to Strengthen Western Rare Earth Supply
Critical Metals Corp (Nasdaq – CRML) has taken a significant step toward securing a Western rare earth supply chain by signing a letter of intent (LOI) with Ucore Rare Metals Inc, a company backed by the US Department of Defense. This multi-year offtake agreement will see Critical Metals supply up to 10,000 metric tons annually of rare earth concentrate from its flagship Tanbreez Rare Earth Project in Greenland to Ucore’s processing facility in Louisiana.
The Louisiana plant, supported by state and federal funding, specializes in producing high-purity rare earth oxides essential for advanced technologies and defense applications. The concentrate from Tanbreez will serve as feedstock after undergoing hydro-metallurgical processing, enabling Ucore to produce critical materials domestically.
Addressing National Security and Supply Chain Risks
Both companies emphasize the strategic importance of this partnership in reducing Western dependence on China, which currently dominates the rare earth supply chain. Pat Ryan, Ucore’s Chairman and CEO, highlighted the shared vision to disrupt China’s grip on rare earths, particularly heavy rare earth elements vital for national security and clean energy technologies.
Critical Metals’ Executive Chairman Tony Sage noted that the agreement not only secures a first buyer for the Tanbreez project but also preserves flexibility to supply other US-based facilities in the future. The Tanbreez deposit is one of the world’s largest rare earth resources, with a significant concentration of heavy rare earths, positioning it as a cornerstone for Western supply resilience.
Next Steps and Market Implications
The parties are moving swiftly toward finalizing definitive agreements, subject to customary conditions such as due diligence, commercial terms, and regulatory approvals. This collaboration aligns with broader geopolitical efforts to diversify critical mineral sources and secure supply chains amid global tensions.
For investors and industry watchers, the deal signals growing momentum in the rare earth sector, particularly for projects that can deliver strategic materials outside of China’s influence. The partnership also underscores the increasing role of government support in developing domestic processing capabilities.
Bottom Line?
This LOI marks a pivotal move toward a secure, Western-controlled rare earth supply chain, with final agreements and production ramp-up poised to shape market dynamics.
Questions in the middle?
- When will the definitive offtake agreement be finalized and production commence?
- What are the projected timelines and capacities for Ucore’s Louisiana processing facility?
- How will this partnership influence rare earth pricing and supply chain geopolitics?
