(Reuters) -U.S.-based Critical Metals has signed a letter of intent to supply magnet company REalloys with rare earths from its Tanbreez project in Greenland, the latest such deal as the government focuses on industries crucial to national security.
The Wednesday announcement from Critical Metals sent its shares up nearly 21% in morning trade to $12.11. REalloys is one of the few companies in the U.S. fully equipped to process rare earths for magnets used in everything from robotics to defense applications.
The Trump administration has increasingly taken stakes in critical industries such as minerals and semiconductors to reduce reliance on China.
The Critical Metals agreement is for 15% of production from its Tanbreez project, and follows a similar off-take deal signed in August with Ucore Rare Metals, bringing total committed Tanbreez output for U.S. customers to 25% of the project’s near-term production.
In June, Critical Metals received a letter of interest from the U.S. Export-Import Bank (EXIM) for a loan worth up to $120 million to fund the Tanbreez mine.
(Reporting by Pranav Mathur in Bengaluru; Editing by Devika Syamnath)
