【Epoch Times News, August 27, 2025】The US mining developer “Critical Metals” announced on Tuesday, August 27, that it has signed a 10-year contract to supply heavy rare earth concentrates to the Louisiana processing plant owned by the Canadian company “Ucore Rare Metal,” which is subsidized by the US government.
The agreement between the US “Critical Metals” and the Canadian rare earth exporter “Ucore Rare Metal” involves the supply of rare earth raw materials from their Tanbreez project in Greenland. Critical Metals plans to supply up to 10,000 tons of concentrates per year, approximately 10% of the initial production capacity of the project.
At the time of signing this agreement, the US is actively seeking to increase domestic production capacity of critical minerals to counteract China’s nearly monopolistic competition in this sector.
“Ucore Rare Metal” of Canada is constructing a light and heavy rare earth separation facility in Louisiana, with production expected to start by the end of 2025. The Louisiana plant has received a $18.4 million grant from the US Department of Defense for the initial phase of the four-stage construction.
The company stated that the plant aims to produce 2,000 tons of high-purity rare earth oxides next year, with capacity expected to increase to an annual output of 7,500 tons by 2028.
Rare earths refer to a group of 17 rare metals used in the production of magnets that convert electricity to kinetic energy. China has used rare earths as leverage in its trade negotiations with the US and halted exports to the US in March this year. Although there have been signs of easing in June, the overall tight supply of rare earths highlights the urgent need for the US to enhance domestic production capacity.
In June of this year, Critical Metals received a letter of intent from the US Export-Import Bank (EXIM), approving them to apply for a loan of up to $120 million for the development of the Tanbreez mine, making it the first overseas mining investment under the Trump administration.
The Tanbreez project is estimated to cost $290 million and is projected to produce 85,000 tons of rare earth concentrates and two rare metals annually upon full operation.
(This article draws from reports by Reuters)