European Lithium Ltd is edging closer to becoming a strategic Western supplier of heavy rare earths, having completed a positive Preliminary Economic Assessment (PEA) for the Tanbreez Rare Earth Project in southern Greenland.
Location of the TANBREEZ Rare Earth Project, Southern Greenland.
Robust economics
Jointly developed with Critical Metals Corp (NASDAQ: CRML), the PEA highlights the project’s robust economics and strategic significance.
Tanbreez hosts a 45 million tonne resource at 0.40% total rare earth oxides (TREO), with a large proportion, 27%, classified as high-value heavy rare earth elements (HREE) including dysprosium, terbium and yttrium.
The resource remains open laterally and at depth, with further drilling planned to support future reserve definition.
Situated on Greenland’s southern coast, Tanbreez offers year-round deep-water access, proximity to infrastructure and a comparatively low environmental footprint.
Fully permitted through to 2050, the project will employ conventional open-pit mining of surface-exposed kakortokite ore, with a low initial strip ratio of 0.5:1 expected to support favourable early economics.
On-site processing will use gravity and magnetic separation to produce a eudialyte-enriched concentrate grading 20–30% TREO.
Reduced reliance on China
This concentrate will be exported to hydrometallurgical refineries in the United States or Europe, supporting Western geopolitical efforts to reduce reliance on Chinese rare earth supply.
The modular plant design supports staged development, while the coastal location is expected to lower capital and operating costs.
Although the base-case model does not include revenue from by-products, the ore also contains zirconium, tantalum and niobium, offering further upside as studies progress.
Project-level returns
European Lithium holds a 7.5% direct interest in Tanbreez and around 70% of CRML, providing shareholders with exposure to both project-level returns and broader critical minerals partnerships.
With feasibility work advancing in 2025 and initial production targeted for 2028, the PEA is a key step in a suite of activities which includes securing offtake agreements, government support and financing to progress the project.