US Secures Greenland Rare Earth Supply Ahead of China Restrictions

The village of Tasiilaq in Greenland. An American company is now developing a rare earth supply chain on the island. Photo: Creative Commons Licence. Credit: Barni1.

Published by

Markku Björkman - 2 Jun, 2026

US materials and critical minerals company REalloys has signed a 15-year offtake agreement with Critical Metals covering production from the Tanbreez rare earth project in southern Greenland.

The agreement grants REalloys access to 15% of Phase 1 production from the deposit, which is regarded as one of the world's largest known resources of heavy rare earth elements.

The deal comes as Washington intensifies efforts to reduce dependence on Chinese supply chains for strategic materials ahead of planned Pentagon restrictions on Chinese-origin rare earth materials from 2027.

Critical materials for defence applications

The Tanbreez deposit contains significant quantities of dysprosium and terbium, two rare earth elements used in high-performance permanent magnets for fighter aircraft, missile systems, radar equipment, drones and other advanced defence technologies.

These materials are considered strategically important because China continues to dominate global rare earth refining and metallisation capacity.

According to industry estimates, China controls the majority of the world's rare earth processing infrastructure, making Western nations vulnerable to supply disruptions and export restrictions.

Building processing capacity in the United States

At the same time, REalloys is expanding its production platform in Ohio, where it plans to process rare earth materials into metals, alloys and eventually NdFeB permanent magnets.

These magnets are used in a wide range of applications, including defence systems, electric vehicles, robotics, industrial equipment and aerospace technologies.

The company says the Ohio facility is intended to become the largest heavy rare earth metallisation operation outside China.

The Greenland supply agreement therefore represents a key component of REalloys’ strategy to establish a Western-controlled supply chain stretching from mine to finished product.

Greenland gains geopolitical importance

The Tanbreez project has attracted increasing international attention as Western governments seek alternative sources of critical minerals.

Unlike many rare earth projects that focus primarily on light rare earth elements, Tanbreez contains a substantial proportion of heavy rare earths, which are generally more difficult to source and command greater strategic value for defence and high-technology applications.

The project is fully permitted and is controlled by Critical Metals, which acquired a 92.5% ownership stake following approval from Greenlandic authorities earlier this year.

Pentagon concerns drive investment

For several years, the US Department of Defence has sought to reduce reliance on Chinese-controlled raw materials and processing capabilities.

Growing geopolitical tensions and concerns about future export restrictions have accelerated efforts to establish domestic and allied supply chains for critical minerals.

China’s recent restrictions on exports of several strategic materials have further increased pressure on Washington to secure alternative sources.

Magnet manufacturing is the next step

REalloys plans to begin with production of high-purity rare earth oxides, metals and alloys in North America before expanding into permanent magnet manufacturing.

According to company plans, magnet production in Ohio could begin around 2029, allowing the entire supply chain—from raw material processing to finished magnets—to operate within North America.

Such an integrated approach is increasingly viewed as essential for reducing supply chain risks in strategically important industries.

Strategic issue for Western economies

Demand for rare earth elements is expected to continue rising as electrification, renewable energy technologies, advanced electronics and defence programmes expand.

As a result, several Western countries are investing heavily in alternative supply chains designed to reduce dependence on China, which continues to dominate large parts of the global market.

The agreement between REalloys and Tanbreez is widely seen as another step in that direction and highlights Greenland’s growing importance as a supplier of critical minerals to Western economies.

Source: Oilprice.com, REalloys, Critical Metals