What's Happening?
Critical Metals, a US-based spinout of European Lithium, has signed a letter of intent with Ucore Rare Metals for the offtake of rare earth concentrate from the Tanbreez project in Greenland. The agreement involves supplying up to 10,000 tons per year of rare earth concentrate, which will be processed at Ucore's facilities in Louisiana and Ontario. The partnership aims to reduce China's influence on the rare earth market and support the development of a robust supply chain in America.
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Why It's Important?
The agreement between Critical Metals and Ucore is a strategic move to strengthen the rare earth supply chain in the US, reducing reliance on China. This partnership is crucial for addressing national security challenges and meeting the growing demand for rare earths, essential for various technologies. The collaboration supports the US Department of Defense's efforts to secure critical minerals and enhances the country's position in the global rare earth market.
What's Next?
Critical Metals and Ucore are working towards definitive documentation, subject to due diligence and necessary approvals. The partnership is expected to expand Ucore's processing capabilities and support the development of a diverse supply chain for rare earths in America. The Tanbreez project in Greenland offers significant opportunities for both companies, with potential expansions in production and collaboration with other US-based facilities.
