Critical Metals Corp (NASDAQ: CRML) has executed a term sheet to create a 50/50 joint venture with Fabrica de Prelucrare a Concentratelor de Uraniu (FPCU), a state-owned Romanian entity and subsidiary of Nuclearelectrica. The JV is intended to develop a rare earth processing facility in Romania, fed by concentrate from CRML’s Tanbreez project in Greenland.
Under the term sheet, the Romanian JV would receive 50% of Tanbreez’s rare earth concentrate production over the life of mine, on competitive market terms. Combined with existing offtake arrangements with Ucore and ReAlloys, this brings total committed Tanbreez concentrate under long-term agreements with allied counterparties to 75%, reinforcing the project’s strategic positioning in Western supply chains.
A notable feature of the structure is that Critical Metals will retain its 50% JV interest on a carried basis, with no capital requirement for construction capex at the Romanian plant. The facility is expected to produce rare earth metals and aerospace and military-grade magnet products, directly targeting European industrial, defence and electrification demand.
Chief executive Tony Sage framed the transaction as a geopolitical milestone, stating:
“This is a monumental game-changer for CRML and the entire Western world. By capturing immense downstream value from Tanbreez concentrate, we’re not just building a plant — we’re dismantling China’s stranglehold on rare earths and empowering Europe with independent, secure supplies for its defense 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, slated for completion next year, as we collaborate with FPCU to process Tanbreez output and propel Europe toward mineral independence.”
Romania’s Minister of Energy, Bogdan Ivan Gruia, emphasised the strategic dimension for the EU, describing the initiative as a “direct contribution to Europe’s industrial and security architecture” and positioning Romania as a “reliable partner for the entire Euro-Atlantic community” in critical raw materials.
CRML plans to incorporate a redesigned flowsheet, targeting an increase in Tanbreez concentrate grade from roughly 2.2–2.5% to more than 3% TREO, into an updated feasibility study. The company expects to update the market on the revised FS and economics by the end of Q1 2026.
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