Critical Metals Joins Forces with Romania to Secure Rare Earth Supply from Greenland

CRML signs JV term sheet with state-owned FPCU to process Tanbreez rare earths in Romania, reducing EU reliance on China.

Critical Metals revealed on Tuesday that it has signed a term sheet to form a joint venture with Romania's state-owned Fabrica de Prelucrare a Concentratelor de Uraniu (FPCU), which processes uranium and other strategic mineral concentrates.

The Tanbreez project in Greenland, which is close to one of the biggest heavy and medium rare earth deposits in the world, gives CRML long-term offtake rights for half of the entire concentrate production.

The company stated the joint venture describes the planning, financing, and commissioning of a rare earth processing facility in Romania. As per the agreement, CRML will provide the Romanian JV with half of the premium rare earth concentrates from the Tanbreez project for the duration of the mine.

The JV formation comes after CRML and US-based rare earth processor REalloys signed a letter of intent in October for a 10-year offtake agreement covering 15% of Tanbreez's production.

According to CRML, the planned JV in Romania would create a highly resilient supply chain focused on Europe, reducing dependency on China, which presently controls over 80% of the world's rare earth processing, and securing the EU from geopolitical threats. For high-value downstream European industries, this guarantees a safe, NATO-aligned feedstock.

The company specified that it will hold fifty percent of the stake in the JV on a carried interest basis and will not be issuing any debt or stock. Also, there won't be any capital expenditures needed to construct the processing facility.

According to CRML, advanced materials and rare earth metals will be used directly within the EU strategically to strengthen defense technologies, advanced manufacturing, electrification, and national security.