European Lithium (ASX:EUR) and Tanbreez: a rare earths game changer

The global battle for rare earth elements (REEs) security just got a fresh contender, with European Lithium (ASX:EUR) unveiling the long-dormant resource estimate for its Tanbreez Project in Greenland.

At 45 million tonnes (MT) with 0.4% total rare earth oxides (TREO), Tanbreez is not only significant in scale but could emerge as a strategically vital heavy rare earths (HREE) supplier to the West.

What Sets Tanbreez Apart?

Unlike China-dominated rare earth mines, which are heavily skewed toward light rare earth elements (LREEs), Tanbreez’s deposit contains more than 27% HREEs—essential for high-performance magnets, defence technology, and green energy applications.

The host rock—Kakortokite—spans a vast 4.7 billion tonnes, indicating resource potential far beyond the maiden 45MT estimate.

As Tony Sage, Executive Chairman of European Lithium, noted:

“The deposit drilling only covers approximately 5% of the total project area, and deeper and extension drilling will commence shortly to deliver an even higher resource.”

Why This Matters Now

With the US and Europe scrambling to reduce their reliance on China for critical minerals, Tanbreez’s emergence aligns with a broader geopolitical push for resource independence.

China controls roughly 90% of the world’s HREE supply, and any meaningful alternative is bound to attract serious interest.

The project’s logistical advantages further bolster its case.

Located in southern Greenland, Tanbreez boasts deep-water fjords with year-round shipping access to the Atlantic, making it an attractive supply chain solution compared to landlocked competitors.

The Unfinished Business

Despite the scale and potential, there’s a catch: the Mineral Resource Estimate (MRE) dates back to 2016 and was commissioned for private use, meaning it has not undergone recent scrutiny or updates.

European Lithium and its US-listed partner, Critical Metals Corp (NASDAQ:CMC), are now fast-tracking verification drilling, with new assay results expected soon.

“We are measuring the real potential for Tanbreez on the significant investment over the past two decades,” Sage said.

Additionally, while the project holds an exploitation licence granted in 2020, the challenge remains in funding and commercialising its processing.

Historically, HREE extraction has posed metallurgical complexities, and without a proven flow sheet, Tanbreez’s full economic potential remains a question mark.

Investor Takeaway

While the market has been fixated on more advanced projects like Hastings Technology Metals (ASX:HAS) and Arafura Rare Earths (ASX:ARU), Tanbreez is quietly positioning itself as a long-term disruptor.

If the upcoming drilling campaign upgrades the resource and metallurgical studies confirm economic extraction, this Greenland giant could become a pivotal Western rare earth supplier.

For now, it’s a high-stakes waiting game—but one with potentially outsized rewards.

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