Aug 26 (Reuters) - Critical Metals on Tuesday

said it has signed a 10-year agreement to supply heavy rare

earth concentrate to Ucore Rare Metal's U.S.

government-funded Louisiana processing facility.

The development-stage mining company expects to supply up to

10,000 metric tons of the concentrate annually from its Tanbreez

Project in Greenland, which represents about 10% of the

project's initial projected production.

The agreement comes as the U.S. looks to boost domestic

production of critical minerals to offset China's near-total

control of the sector.

Ucore's Louisiana facility had received $18.4 million

from U.S. Defense Department for the first of four phases of

construction.

It aims to produce 2,000 tonnes per annum (tpa) of

high-purity rare earth oxides next year, with the capacity

expected to be scaled up to 7,500 tpa in 2028, according to the

company.

Rare earths are a group of 17 metals used to make magnets

that turn power into motion. China halted exports in March as

part of a trade spat with Trump that showed some signs of easing

in June, even as the broader tensions underscored the need for

greater U.S. output.

Critical Metals had received a letter of interest in June

from the U.S. Export-Import Bank (EXIM) for a loan worth up to

$120 million to fund the Tanbreez mine, making it the Trump

administration's first overseas investment in a mining project.

The Tanbreez project is expected to cost $290 million, and

is expected to produce 85,000 metric tons per year of a rare

earths concentrate and two minor metals, once fully operational.