Critical Metals Secures 10-Year Agreement to Supply U.S. Government-Funded Rare Earth Facility, Strengthening Domestic Critical Mineral Supply Chain
Critical Metals announced Tuesday that it has signed a 10-year agreement to supply heavy rare earth concentrate to Ucore Rare Metals’ U.S. government-funded processing facility in Louisiana. The deal represents a major step in the United States’ effort to reduce dependence on foreign sources of critical minerals, a sector long dominated by China, and positions Critical Metals as a key player in the domestic supply chain.
Under the agreement, Critical Metals expects to supply up to 10,000 metric tons of rare earth concentrate annually from its Tanbreez Project in Greenland, accounting for roughly 10% of the project’s initial projected production. Once fully operational, the Tanbreez project is projected to produce 85,000 metric tons per year of rare earth concentrate, along with two minor metals, with total project costs estimated at $290 million. The project had earlier gained attention when the U.S. Export-Import Bank expressed interest in providing up to $120 million in funding, marking the Trump administration’s first overseas mining investment.
Ucore’s Louisiana facility, which received $18.4 million from the U.S. Defense Department for the first of four planned construction phases, aims to produce 2,000 tonnes per annum (tpa) of high-purity rare earth oxides in its initial year, with plans to scale up to 7,500 tpa by 2028. Rare earths, a group of 17 critical metals used to manufacture magnets and other components that convert energy into motion, have surged in strategic importance amid global supply concerns. The March 2025 halt in Chinese exports during a trade dispute with the Trump administration, despite partial easing in June, reinforced the urgency for domestic production.
The Louisiana facility and Critical Metals’ supply agreement not only advance U.S. national security objectives but also support the growing demand for rare earths in electric vehicles, renewable energy technologies, and defense systems. By securing a reliable domestic source, the United States can strengthen its technological competitiveness while reducing exposure to foreign market fluctuations. The deal underscores the strategic alignment between private sector mining initiatives and federal priorities to expand domestic critical mineral capacity, positioning Critical Metals as a long-term contributor to America’s mineral independence.
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