Unlocking Undervalued Rare Earth Exposure: Blackboxstocks' Merger with Realloys and Strategic Alliances with Critical Metals Corp

The rare earth and critical minerals sector has long been plagued by geopolitical risks and supply chain vulnerabilities, particularly due to China's dominance in processing and refining. However, a new player is emerging to disrupt this dynamic: Blackboxstocks Inc. (NASDAQ: BLBX), which recently completed a transformative merger with REalloys Inc., a U.S.-based vertically integrated rare earth processor. Coupled with a strategic off-take agreement with Critical Metals Corp. (NASDAQ: CRML), this corporate repositioning positions the combined entity to capitalize on undervalued rare earth exposure while aligning with U.S. national security priorities.

Corporate Repositioning: From Niche Player to Integrated Producer

In March 2025, Blackboxstocks announced a definitive merger agreement to acquire REalloys, valuing the latter at $400 million. Post-merger, Blackbox stockholders will retain approximately 7.3% ownership of the combined company, effectively leveraging REalloys' downstream capabilities and strategic assets, as outlined in the merger agreement. This move transforms Blackboxstocks into a mine-to-magnet producer, with REalloys' Euclid, Ohio facility serving as a critical node for processing rare earth concentrates into alloys and magnet materials for defense and industrial applications, as described in the 10-year off-take agreement.

The merger's significance lies in its ability to unlock liquidity and visibility for REalloys' operations. By going public via a merger, REalloys gains access to capital markets, enabling accelerated development of its vertically integrated supply chain. This repositioning is particularly timely, as U.S. government agencies, including the Defense Logistics Agency (DLA), increasingly prioritize domestic sources for rare earth materials, a priority highlighted in the merger agreement.

Strategic Off-Take Agreements: Securing Long-Term Feedstock

A cornerstone of REalloys' strategy is its 10-year off-take agreement with Critical Metals Corp. for 15% of the Tanbreez Project's projected rare earth concentrate production in Southern Greenland, according to the 10-year off-take agreement. This agreement ensures a steady supply of heavy rare earth elements (HREEs), which are indispensable for high-performance magnets used in defense systems, robotics, and clean energy technologies, as indicated in the LOI.

The Tanbreez Project, one of the world's largest HREE deposits, is strategically positioned to address global shortages. Critical Metals' non-binding letter of intent (LOI) commits to supplying 6.75 million metric tons of concentrate over the 10-year term, representing 15% of Tanbreez's output, according to the non-binding LOI. This partnership not only secures REalloys' feedstock but also aligns with U.S. and allied efforts to decouple from Chinese-dominated supply chains, as noted in the Business Insider coverage.

Notably, this is not REalloys' first such agreement. In a complementary move, Critical Metals also signed a 10% off-take deal with Ucore Rare Metals Inc., bringing the total U.S. off-take commitment from Tanbreez to 25%, according to Critical Metals' news release. This diversification of supply reduces counterparty risk and underscores the project's geopolitical importance.

Geopolitical and Market Implications

The U.S. government has identified rare earth elements as critical to national security, with the Biden administration allocating billions to incentivize domestic production. REalloys' vertically integrated model-spanning mining, processing, and magnet manufacturing-positions it to benefit from these policies. By securing long-term off-take agreements, the company mitigates the volatility inherent in the rare earth sector, where prices are often dictated by Chinese exports, as discussed in earlier reports.

Moreover, the partnership with Critical Metals enhances REalloys' credibility as a reliable supplier. Critical Metals' Tanbreez Project is already in the permitting phase, with production expected to commence within 18–24 months, according to the company's news release. This timeline aligns with REalloys' capacity to scale its Ohio facility, creating a seamless supply chain from Greenland to the U.S. Midwest.

Investment Thesis: Undervalued Exposure in a High-Growth Sector

Despite its strategic advantages, REalloys remains undervalued relative to its peers. At a $400 million valuation, the company's assets and off-take agreements suggest significant upside potential. The merger with Blackboxstocks provides a catalyst for re-rating, as the combined entity gains access to broader investor bases and operational efficiencies.

For investors, the key risks include regulatory delays for the Tanbreez Project and execution challenges in scaling production. However, the off-take agreements with Critical Metals and Ucore provide a degree of downside protection, ensuring demand for REalloys' output even in a subdued market.

Conclusion

Blackboxstocks' merger with REalloys and its strategic alliance with Critical Metals Corp. represent a masterstroke in unlocking undervalued rare earth exposure. By securing long-term off-take agreements and repositioning as a vertically integrated producer, the combined entity addresses both supply chain vulnerabilities and market inefficiencies. For investors seeking to capitalize on the global shift toward resource independence, this corporate repositioning offers a compelling case study in strategic foresight and operational execution.