U.S. Scores Major Rare Earth Win With Greenland Deposit Deal
As Washington races to build a rare earth supply chain capable of surviving the Pentagon’s 2027 ban on Chinese-origin materials, REalloys (NASDAQ: ALOY) has locked in long-term supply from one of the largest known heavy rare earth deposits in the world.
The company announced last week it signed a definitive 15-year offtake agreement with Critical Metals Corp. (NASDAQ: CRML) covering 15% of Phase 1 production from the Tanbreez project in southern Greenland. The deposit is rich in dysprosium and terbium — the two most strategically sensitive magnet materials used in fighter aircraft, missile systems, radar platforms, drones and advanced defense hardware.
REalloys is building one of the only integrated heavy rare earth metallization and magnet production platforms in North America, as Washington pushes to break its dependence on Chinese processing capacity before the Pentagon ban takes effect in just seven months. The company’s Euclid, Ohio, operation focuses on the hardest part of the rare earth supply chain outside China: converting rare earth oxides into defense-grade metals, alloys and ultimately NdFeB permanent magnets — the world’s strongest magnet type, essential for missiles, fighters, robotics, EV drivetrains and industrial systems.
REalloys says it is scaling that Ohio platform into the largest heavy rare earth metallization facility outside China, backed by a growing network of allied-nation feedstock agreements. The Tanbreez deal significantly expands that network: under the agreement, REalloys will receive 15% of monthly Phase 1 output for an initial 15-year term.
This is another major announcement for REalloys as it races to stay ahead of key defense deadlines. The Tanbreez offtake follows the company’s strategic partnership with the Saskatchewan Research Council, tied to 80% of the output from its commercial rare earth processing facility, and adds to previously secured rights for up to 10% of production from the high-grade Sheep Creek deposit in Montana, as well as control of the Hoidas Lake asset in Saskatchewan.
Greenland emerges as a Western rare earth stronghold
Trump didn’t manage to buy Greenland, but REalloys got its critical minerals. The strategic importance of the Tanbreez project goes far beyond scale: it is one of the largest known heavy rare earth resources globally and one of the few major Western-aligned projects capable of supplying meaningful quantities of dysprosium and terbium outside China. Critical Metals estimates heavy rare earths account for roughly 27% of the project’s total profile, while most global deposits focus on lighter, less valuable rare earths. The project is already fully permitted and advancing under a Western-aligned ownership structure, following Greenland’s approval of Critical Metals’ acquisition of a controlling 92.5% interest earlier this year.
Pentagon deadlines and depleted arsenals
For REalloys, the deal secures another long-term heavy rare earth material source now central to Pentagon supply chain planning, amid conflicts in the Middle East and Ukraine that are rapidly depleting U.S. arsenals. Johns Hopkins economists Steve Hanke and Jeffrey Weng told Fortune magazine that the U.S. has already burned through massive portions of its precision weapons inventory — including 45% of its Precision Strike Missile inventory just in Iran, nearly 50% of its THAAD interceptors, and 30% of its Tomahawk cruise missiles — while remaining dependent on Chinese-controlled rare earth materials to replace them. Those systems rely on samarium-cobalt or dysprosium- and terbium-enhanced NdFeB magnets that still flow overwhelmingly through China’s refining and metallization system. The economists estimate that replenishing just four major weapons systems could require between five and ten metric tons of finished defense-grade rare earth magnets, with more than 95% of current supply chains still tied to China.
That is the gap REalloys is helping to close, with a North American solution led by a leadership lineup representing the who’s who of American defense. Joe Kasper, former Chief of Staff to the U.S. Secretary of Defense, chairs REalloys’ advisory board, working closely with Board Chair Stephen duMont (president of GM Defense) and board member General Jack Keane (former Vice Chief of Staff of the U.S. Army). “This is about building a completely sovereign supply chain from input to finished product, without relying on foreign processing,” Kasper told Oilprice.com. “If the U.S. can’t access domestically-processed and manufactured materials, then it does not have a rare earths supply chain at all.”
All systems go
REalloys’ Phase One operations are already turning rare earths into alloys in Ohio, with an ongoing build-out that will launch next year alongside the Pentagon ban. Phase One intends to move into North American production of high-purity rare earth oxides using a mix of recycled magnets and mined feedstock, with about $75 million in capital required and $50 million already allocated. By Phase Two, all production will run through the Ohio facility, increasing throughput and expanding the range of material it can process — including heavy rare earths like dysprosium and terbium. Phase Two will also vertically integrate by adding magnet production, with plans to manufacture NdFeB magnets in-house by 2029, closing the loop from processed material to finished components. That economics leap prompted Clear Street in April to initiate coverage with a Buy rating and a $35 price target, even though the stock was trading just under $8 at the time.
The rare earths end game
Rare earths now face tightening restrictions on both sides of the Pacific. Bloomberg reports internal disagreements inside the Trump administration after China’s export restrictions exposed major U.S. vulnerabilities — the argument is whether to rely on market forces or use aggressive state-backed financing similar to China’s model. Large U.S. industrial and defense players like GE Aerospace (NYSE:GE) and LMT (NYSE:LMT) are increasingly exposed to the rare earth bottleneck as advanced jet engines, missile systems and radar platforms remain dependent on dysprosium-, terbium- and NdFeB-based magnets. As Pentagon restrictions tighten ahead of 2027, securing non-Chinese processing and metallization capacity is rapidly becoming a strategic issue across the broader U.S. defense-industrial base.
That is why companies capable of securing even a single strategic link in the non-Chinese rare earth supply chain could become some of the most valuable industrial and defense assets of the next decade.
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