European Lithium Ltd (ASX:EUR, OTCQB:EULIF)’s fully owned subsidiary, Critical Metals Corp (Nasdaq: CRML), has entered into a letter of intent (LOI) for a multi-year offtake agreement with Ucore Rare Metals Inc (Ucore). The deal will see Critical Metals supply up to 10,000 metric tonnes of rare earth concentrate annually from the Tanbreez Rare Earth Project in Greenland, representing about 10% of the project’s initial projected output.
The agreement marks a milestone for both Critical Metals and European Lithium, validating Tanbreez as a world-class asset and advancing efforts to develop an independent rare earths supply chain in North America.
“This development further validates the opportunities ahead for Critical Metals and the strength of our world-class asset in Southern Greenland,” EUR executive chairman Tony Sage said.
“Securing this offtake provides Critical Metals both with our first buyer and the flexibility to supply other US based rare earth facilities in the future, given the immense size of our Tanbreez deposit. 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.”
Details of the offtake
The offtake arrangement will see Critical Metals deliver up to 10,000 metric tonnes of concentrate each year to Ucore. This material will undergo hydrometallurgical processing before being converted into high-purity rare earth oxides.
Ucore intends to use the concentrate as feedstock for its processing facilities in Alexandria, Louisiana—backed by both the United States Department of Defense and the Louisiana state government—and Kingston, Ontario. The Louisiana facility, which began construction in May 2025, is focused on heavy rare earths and designed to supply defence and clean energy industries.
“Critical Metals Corp’s Tanbreez offers tremendous opportunities for Ucore given the significant concentration of heavy rare earths it contains, which are essential for our processing facility in Louisiana, and our downstream partners,” Ucore chairman and chief executive Pat Ryan said.
“Both Critical Metals Corp and Ucore share a vision to lessen China’s grip of the rare earth ecosystem in the West, and we look forward to our partnership.”
This agreement positions Critical Metals and, by extension, European Lithium to play a role in strengthening North American supply resilience by providing consistent feedstock for emerging downstream processors.
Path forward
Critical Metals and Ucore are now progressing towards a definitive offtake agreement. The execution will remain subject to due diligence, finalisation of commercial terms, and necessary regulatory approvals.
For European Lithium, the agreement offers exposure to one of the world’s largest undeveloped rare earth deposits and provides a clear pathway for the Tanbreez project to participate in the strategic reconfiguration of global supply chains.