Overview
- REalloys and Critical Metals executed a definitive offtake on May 20, 2026 that allocates 15% of Tanbreez Phase 1 monthly production to REalloys with a plus-or-minus 5% delivery variance.
- The contract starts a 15-year initial term at first commercial delivery and uses market-referenced formula pricing with floor-price protection, while certain payable percentages and recovery assumptions remain to be finalized.
- Critical Metals consolidated control of Tanbreez to 92.5% in April 2026 and has disclosed Phase 1 nameplate capacity of up to 15,000 tonnes per year and high dysprosium and terbium content that are valuable for high-temperature magnets.
- Key operational and commercial hurdles remain before shipments begin, including REalloys' concentrate qualification tests, finalization of payable/recovery terms, and Tanbreez permitting, financing, and construction that will determine whether commercial-scale deliveries meet REalloys' January 2027 target.
- If carried out, the deal would add an allied-source feedstock to REalloys' wider supply network for U.S. Department of Defense, DOE, and NASA customers and could reduce reliance on China for heavy rare earths used in critical magnets, but the agreement carries normal project and market risks that could delay or prevent deliveries.