Critical Metals Corp. (Nasdaq: CRML) has executed a non‑binding term sheet to form a 50/50 joint venture with Tariq Abdel Hadi Abdullah Al‑Qahtani & Brothers Company (TQB), a major Saudi Arabian industrial conglomerate. The partnership will advance the development of a rare earth processing facility in Saudi Arabia and secure long‑term offtake for 25% of rare earth concentrate production from the Tanbreez Project in Greenland.
The term sheet establishes a framework for the development, financing, construction, and operation of a state‑of‑the‑art processing plant, creating an integrated mine‑to‑processing supply chain supporting advanced manufacturing, energy transition technologies, and defence‑related applications. CRML and TQB will work together in the coming months to finalise the commercial, technical, and regulatory structure of the joint venture, including plant design, product specifications, and the commercialisation strategy.
TRANSACTION HIGHLIGHTS
- Integrated Supply & Processing Partnership: Execution of a term sheet covering offtake, project financing, development, and the formation of a 50/50 joint venture to construct and operate a rare earth processing facility in Saudi Arabia, directly expanding non-Chinese global processing capacity.
- United States & Kingdom of Saudi Arabia Vision 2030 and Strategic Defense Supply Chain: The partnership will send all finished materials to the United States of America for use in the defense industrial complex of the USA.
- Capital-Efficient Structure: CRML will not issue equity or incur debt in connection with the JV and will retain its 50% ownership interest on a carried-interest basis, with no capital expenditure obligations related to construction of the processing facility.
- Strategic Offtake: The JV framework provides for 25% of the Tanbreez Project’s rare earth concentrate production to be supplied to Saudi Arabia for the life of mine, under long-term, market-based commercial terms.
- Advanced Products: The processing facility is expected to produce separated rare earth oxides, metals, and downstream products, including magnet-grade materials suitable for aerospace, defense, and high-performance industrial applications.
- Supply Chain Security: The partnership establishes a resilient and long-term partnership, geopolitically diversified supply chain linking Western-aligned upstream resources with Middle Eastern downstream processing capacity.
- Fully Contracted Offtake Profile: With the addition of this 25% long-term offtake commitment to Saudi Arabia, and together with previously announced agreements, 100% of the Tanbreez Project’s rare earth concentrate production is now allocated under long-term offtake arrangements, providing full revenue visibility and securing supply to strategic, allied markets for the life of mine.
Upon commencement of mining at Tanbreez, CRML expects to supply 25% of produced rare earth concentrates to the Saudi‑based JV for the full life of mine. A jointly governed development committee will oversee engineering, construction, commissioning, and market entry.
Abdulmalik Tariq Al‑Qahtani, CEO of TQB, commented, “Following the successful official visit of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud to the United States, we are pleased to sign a Memorandum of Understanding focused on critical materials. This reflects the strength of the strategic partnership between the Kingdom of Saudi Arabia and the United States and a shared commitment to economic growth, innovation, and technological leadership. Securing diversified, resilient supply chains for critical materials—sourced from Greenland and other resource‑rich jurisdictions—is essential to next‑generation technologies across energy, advanced manufacturing, defence, AI, and data infrastructure. We see a strong opportunity to work with US partners to responsibly develop and deploy these materials in globally competitive value chains.”
Tony Sage, chairman of Critical Metals Corp., commented, “This agreement is a transformational milestone for CRML. By partnering with a leading Saudi industrial group and securing long‑term offtake that brings Tanbreez to 100% committed production, we have effectively de‑risked the mine‑to‑market pathway. Establishing an integrated processing platform in Saudi Arabia not only broadens rare earth processing capacity beyond China but also strengthens supply chain security for allied nations across Europe, the Middle East, and beyond. This positions CRML as a cornerstone supplier of critical minerals for advanced manufacturing, energy transition technologies, and national security applications for decades.”
The partnership marks one of the most significant steps to date in establishing alternative rare earth processing capacity outside China, positioning CRML as a cornerstone supplier to allied industrial and national security markets.
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