Blackboxstocks (BLBX) Soars 49.45% on REalloys' 10-Year Rare Earth Offtake Agreement

On October 13, 2025, Blackboxstocks Inc. (NASDAQ: BLBX) surged 49.45% as its share price reached the highest level since October 2025, with an intraday gain of 71.17%. The rally followed a strategic development involving its merger target, REalloys Inc., which secured a 10-year offtake agreement with Critical Metals Corp. for 15% of the rare earth concentrate output from Greenland’s Tanbreez Project. This agreement, formalized through a non-binding letter of intent, ensures REalloys a stable supply of heavy and medium rare earth elements critical for its advanced alloy and magnet production.

The partnership aligns with broader U.S. and allied efforts to establish a North American-aligned rare earth supply chain, reducing reliance on Chinese sources. The Tanbreez Project, one of the world’s largest heavy rare earth deposits, is projected to deliver 6.75 million metric tons of concentrate over the decade. This move strengthens REalloys’ vertically integrated operations, including its Ohio metallization facility supplying materials to U.S. defense and energy programs. By securing feedstock from Tanbreez, the company mitigates geopolitical risks and enhances supply chain resilience for high-performance magnets used in defense and clean energy sectors.

Blackboxstocks’ merger with REalloys represents a pivotal growth catalyst, combining upstream resources like Canada’s Hoidas Lake project with midstream processing and downstream manufacturing. The Hoidas Lake deposit, containing both heavy and light rare earths, diversifies the combined entity’s resource base to meet U.S. “protected market” demands. REalloys’ collaboration with the Saskatchewan Research Council further aims to establish domestic midstream capabilities, reinforcing North America’s independence from foreign rare earth processing. The expanded supply from Tanbreez is expected to boost production capacity at REalloys’ Ohio facility, supporting long-term operational scalability.

Geopolitical and logistical advantages underscore the partnership’s significance. Greenland’s Tanbreez Project offers year-round deep-water shipping access, facilitating efficient material transport to North America. This aligns with U.S. strategies to de-risk supply chains from China-dominated markets. The 10-year agreement also provides REalloys with predictable raw material availability, enabling strategic planning for midstream and downstream operations. The combined company’s integrated supply chain—from mine to magnet—positions it to capitalize on growing demand for rare earth materials in defense, clean energy, and advanced technologies.

While the merger and offtake agreement highlight transformative potential, risks remain. Challenges include regulatory hurdles, project development timelines, and market demand fluctuations. However, the strategic alignment with U.S. national security priorities creates a strong foundation for long-term value. By addressing supply chain vulnerabilities and leveraging Western-aligned resources, Blackboxstocks and REalloys aim to reduce global dependence on non-Western rare earth sources. The collaboration underscores a shift toward resilient, geographically diversified supply chains, positioning the combined entity to meet urgent industrial and defense needs in a high-demand sector.