U.S.-based GreenMet has entered a strategic partnership with Critical Metals Corp to develop the Tanbreez rare earth project in southern Greenland, aiming to reduce Western reliance on Chinese critical minerals. The project, one of the largest undeveloped rare earth deposits outside China, holds 45 million tonnes of ore containing 0.4% total rare earth oxides (TREO), with 27% comprising heavy rare earth elements (HREEs) like dysprosium, terbium, and yttrium—essential for defense, electric vehicles, and renewable energy technologies.
The Tanbreez deposit, situated in a 4.7-billion-tonne mineralized kakortokite formation, is fully permitted through 2050 and will utilize open-pit mining near a deep-water fjord, enabling direct shipping access. A preliminary economic assessment (PEA) projects a net present value (NPV) of $3.04 billion and an internal rate of return (IRR) of 180%, with initial production targeting 85,000 tonnes of rare earth oxides annually. This output would account for over 35% of China’s 2023 production, challenging Beijing’s dominance in global rare earth supply chains.
The partnership aligns with U.S. efforts to secure critical mineral supplies amid escalating trade tensions. GreenMet, which bridges private capital and government initiatives, will leverage its expertise to advance the project, while Critical Metals plans to complete a definitive feasibility study by late 2025. The U.S. Department of Defense has shown interest in the project as part of its strategy to bolster domestic rare earth production.
While the PEA highlights strong economics, scaling production requires overcoming logistical hurdles in Greenland’s remote Arctic environment. Financing and technical complexities in rare earth processing remain key obstacles, though Critical Metals aims to address these through modular processing plans and partnerships.
