Critical Metals plans $1.5bn rare earths JV in Saudi
Nasdaq-listed Critical Metals Corp has executed a nonbinding term sheet with Saudi Arabian industrial conglomerate Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (TQB) to establish a 50:50 joint venture (JV) for the development of a rare earth processing facility in Saudi Arabia.
The proposed facility is expected to require capital investment of up to $1.5-billion and would create a fully integrated mine-to-processing supply chain for rare earth materials, supporting defence, advanced manufacturing and energy transition industries aligned with the US and its allies.
Under the term sheet, the JV would process rare earth concentrates from the Tanbreez project in southern Greenland, with 25% of Tanbreez’s rare earths concentrate production allocated to Saudi Arabia for the life-of-mine under long-term, market-based offtake arrangements. With this agreement, 100% of Tanbreez’s concentrate production is now covered by long-term offtake commitments.
Critical Metals will retain a 50% interest in the JV on a carried basis and will not issue equity or incur debt in connection with the development of the processing facility. All finished materials produced by the JV are intended for delivery to the US for use in its defence industrial complex.
The processing facility is expected to produce separated rare earth oxides, metals and downstream products, including magnet-grade materials for aerospace, defence and high-performance industrial applications. The partnership is positioned to expand non-Chinese rare earths processing capacity and strengthen supply chain security across Western-aligned markets.
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