Greenland Rare Earth Deal Secures Dysprosium for Western Defense Magnets
LMT•REalloys secured 15% of Phase 1 output from Greenland’s Tanbreez heavy rare earth deposit under a 15-year offtake agreement, locking in supplies of Dysprosium and Terbium. This expands Western NdFeB magnet production capacity for defense systems before the Pentagon ban on Chinese materials takes effect in 2027.
1. Offtake Agreement Secured
Under a definitive 15-year offtake agreement, REalloys will receive 15% of monthly Phase 1 output from the Tanbreez heavy rare earth deposit in southern Greenland. The deposit contains high-grade Dysprosium and Terbium, critical for manufacturing NdFeB permanent magnets used in advanced weaponry.
2. Ohio Facility Expansion
REalloys is scaling its Euclid, Ohio facility into the largest Western heavy rare earth metallization plant with $50 million allocated of a $75 million capital requirement. Phase One operations already convert rare earth oxides into alloys, with Phase Two set to increase throughput and vertically integrate magnet production by 2029.
3. Defense Supply Chain Impact
The secured supply supports U.S. defense programs facing the Pentagon’s 2027 ban on Chinese-origin materials, reducing reliance on foreign sources for precision weapons systems. Lockheed Martin and other defense contractors stand to benefit from a traceable North American rare earth supply chain for missiles, fighter jets, and radar platforms.
