Critical Metals (CRML) has signed a term sheet for a 50/50 joint venture (JV) with Fabrica de Prelucrare a Concentratelor de Uraniu (FPCU), a Romanian state-owned entity, to establish a fully integrated European rare earth supply chain.
This agreement aims to create a mine-to-processing operation designed to secure rare earth materials for European manufacturing and national security sectors.
Under the term sheet, CRML will receive long-term offtake rights to 50% of the Tanbreez concentrate output and set out plans to develop, finance and commission a rare earth processing facility in Romania.
The initiative marks the first fully integrated rare earth supply chain in the Western world, enhancing stability for European industries and defence sectors.
This move presents a challenge to China’s current dominance in global rare earth processing as the country currently controls around 80% of global rare earth processing.
CRML will hold a 50% stake in the joint company on a carried interest basis, with no capital requirements for the facility construction and no debt or equity issuance needed for the JV.
The planned facility will produce aerospace and military-grade magnets as its final product line.
Under the transaction, 50% of the Tanbreez project’s premium rare earth concentrates will be supplied by CRML to the Romanian JV for the full life of mine, securing a Nato-aligned feedstock for European downstream industries.
Together with prior agreements allocating 10% to UCORE and 15% to ReAlloys, this commitment brings CRML’s total long-term offtake of Tanbreez rare earth concentrate with allied nations to 75%.
Over the coming months, CRML and FPCU will finalise the technical and commercial terms for the JV, which is intended to develop and potentially construct a rare earth processing plant in Romania.
A dedicated development committee will oversee plant design, development strategy and the commercialisation of the processed products.
CRML CEO and chairman Tony Sage said: “This is a monumental game-changer for CRML and the entire Western world. By capturing immense downstream value from Tanbreez concentrate, we are not just building a plant – we are dismantling China’s stranglehold on rare earths and empowering Europe with independent, secure supplies for its defence and national security needs.
“Hot on the heels of our strategic offtake deals with ReAlloys and UCORE, this term sheet unites a powerhouse team to deliver a world-class, EU-based rare earth operation that will fuel everything from advanced weaponry to cutting-edge tech.
"This landmark agreement supercharges our updated FS [feasability study], slated for completion next year, as we collaborate with FPCU to process Tanbreez output and propel Europe toward mineral independence.”
Both CRML and the Romanian Government will seek funding from the recently announced €3.5bn ($4.07bn) programme for the delivery of rare earth metals to the EU.
Earlier in October, European Lithium announced the sale of an additional 3.03 million shares of CRML to a US institutional investor, generating around $50m (A$76m) in net proceeds.
