Realloys' 10-Year Offtake Agreement with Critical Metals: A Strategic Catalyst for Growth

The recent 10-year offtake agreement between REalloys Inc. and Critical Metals Corp. for the Tanbreez Project in Southern Greenland marks a pivotal moment in the critical minerals industry. By securing 15% of the project's projected rare earth concentrate output-approximately 6.75 million metric tons over a decade-REalloys has not only solidified its position as a key player in the U.S. rare earth supply chain but also demonstrated how offtake agreements can serve as a catalyst for scaling production and reducing geopolitical risk, according to Critical Metals' press release. This partnership ensures that 25% of Tanbreez's production is pre-sold, providing Critical Metals with revenue certainty and REalloys with a stable feedstock for its Ohio-based magnet manufacturing operations. The REalloys signing was reported by QuiverQuant, and the earlier 10% agreement with Ucore Rare Metals was announced by Discovery Alert.

Strategic Implications for REalloys and Critical Metals

The Tanbreez Project, one of the largest heavy rare earth element (HRE) deposits globally, is critical for applications in high-performance magnets, defense systems, and clean energy technologies, as noted in Business News Today. By locking in long-term supply from this asset, REalloys strengthens its vertically integrated business model, which spans mining, processing, and magnet production. This alignment with U.S. national security priorities-such as reducing reliance on Chinese-dominated supply chains-positions REalloys to benefit from government contracts and subsidies under frameworks like the Inflation Reduction Act, according to the Carnegie Endowment.

For Critical Metals, the agreement reduces financial and operational risks associated with developing the Tanbreez Project. Offtake agreements are increasingly recognized as a vital tool for de-risking critical minerals projects, as they provide upfront revenue visibility and attract private investment, according to an IEA policy brief. The IEA's market review also notes such agreements can mitigate market volatility and encourage diversification of mineral sources, particularly in sectors where supply chain resilience is paramount.

Offtake Agreements as a Scaling Catalyst

The Realloys-Critical Metals deal is emblematic of a broader industry trend. From 2020 to 2025, offtake agreements have become the standard for securing critical minerals, driven by rising demand for clean energy technologies and the need to counter China's dominance in processing and refining, as documented in a ScienceDirect article. For instance, General Motors' $650 million investment in Lithium Americas and Tesla's planned lithium refinery in the U.S. reflect a shift toward direct value chain integration, where offtake agreements serve as the backbone of procurement strategies, according to a CLC Council analysis.

Empirical studies further underscore the financial benefits of these agreements. An analysis by CSIS found that mining projects announcing offtake agreements generated mean abnormal returns of 5.87% and median returns of 3.29% on the day of disclosure, highlighting their role in boosting investor confidence. This is particularly relevant for smaller producers like Critical Metals, which rely on long-term partnerships to fund exploration and infrastructure development.

Policy and Geopolitical Context

Government policies are amplifying the strategic value of offtake agreements. The U.S. has launched investigations into critical mineral supply chain vulnerabilities, while the European Union's Critical Raw Materials Act and Canada's mineral strategy aim to diversify sourcing and incentivize domestic production, according to the Atlantic Council. These frameworks often include mechanisms like guaranteed price contracts and cap-and-floor models to stabilize markets and reduce reliance on non-market actors, as discussed in a Columbia roundtable summary.

The Realloys-Critical Metals agreement aligns with these objectives by creating a Western supply chain for HREs, which are essential for defense-grade magnets. As noted in the Carnegie Endowment report, such partnerships are critical for building resilient supply chains that can withstand geopolitical shocks, such as China's export restrictions on dual-use minerals like gallium and rare earths.

Conclusion

REalloys' 10-year offtake agreement with Critical Metals is more than a commercial transaction-it is a strategic lever for scaling production, reducing geopolitical risk, and aligning with U.S. industrial priorities. As the critical minerals sector matures, such agreements will continue to serve as a cornerstone for building diversified, resilient supply chains. For investors, the deal underscores the importance of partnerships that bridge mining, processing, and end-use applications, particularly in sectors where national security and technological innovation intersect.