Greenland’s 45 million tons of rare earths targeted in decade-long U.S. offtake deal anchored in Louisiana

The world is racing against time and competing with each other to achieve the global mission of reaching net-zero by 2050. As the race progresses, many nations try to outwit one another when it comes to the key components needed for certain renewable technologies. Now, a decade-long offtake targets heavy rare earths, and thanks to a potential partnership, the Greenland ore could change it all for the United States, and Louisiana is going to be central to it all.

This is why people are targeting heavy rare earths

Rare earths are relatively abundant in the Earth’s crust, but their mining has proven difficult due to their low concentrations. According to the World Economic Forum, these elements, especially the heavy rare earths such as dysprosium, terbium, and yttrium, have an even lower natural abundance. They have unique magnetic, optical, and catalytic properties that are not easily replicated. They are indispensable in certain applications.

Applications of Rare Earths

• Electronics
  • Mobile phones, computers, televisions, and LED lighting
• Aerospace and defense
  • Advanced defense systems
• Automotive
  • Electric vehicles
  • Catalytic converters to decrease emissions
• Medical and other technologies
  • MRI machines
  • Components in optical glass for cameras
  • Polishing powders for semiconductors
• Clean energy
  • Key components for wind turbines and electric vehicles, particularly neodymium, which creates the powerful magnets needed for generators and motors
  • Key components in alloys or compounds that improve hydrogen storage capacity
  • Catalysts for hydrogen absorption and release

Now, a Non-binding Letter of Intent (LOI) between Ucore and Critical Metals Corp (CMC) is crucial for the U.S., and Louisiana will be central to the potential deal. The deal entails a decade-long offtake to secure heavy rare earth elements from CMC’s Tanbreez project in Greenland.

Louisiana will be central to the potential deal

Besides playing a key role in the storage and release of hydrogen, the rare earth concentrate will be utilized as feedstock for Ucore’s Strategic Metals Complex (SMC) in Alexandria, Louisiana, according to the company website. This facility is supported by the U.S. Department of Defense and the State of Louisiana.

According to Green Car Congress, the Tanbreez Project will provide up to 10,000 tons of rare earths annually, representing nearly 10% of the project’s initial predicted production. The Chairman and CEO of Ucore, Pat Ryan, had this to add:

“Critical Metals Corp’s Tanbreez offers tremendous opportunities for Ucore given the significant concentration of heavy rare earths it contains, which are essential for the production of rare earth permanent magnets.”

This decade-long deal could transform the U.S.

According to Pat Ryan, the two companies hope to officially seal the deal, as they both share a vision to decrease the grip of China in the West’s rare earth ecosystem. The partnership will allow the U.S. to meet the increasing demand for rare earths while addressing national security obstacles.

Tony Sage, CEO and Executive Chairman of Critical Metals Corp, had this to add:

“Ucore’s refining capabilities, together with feedstock from the Tanbreez project, have the potential to fill key gaps in the western rare earth supply chain. These materials are critical to a number of western defense and consumer applications and we look forward to teaming up with Ucore and their exceptional team to support the development of a robust supply chain in America that isn’t reliant on China.“

The LOI will allow a ten-year term, which will commence on July 1, 2027, for commercial production. The Definitive Offtake Agreement’s execution will be subject to typical conditions such as necessary approvals, completion of due diligence, and completion of commercial terms. This agreement places the U.S. in a favorable geopolitical stance, as Greenland’s 45,000,000 tons will surely help the U.S. to beat China. The renewable energy and defense industry will be revolutionized.

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