Nasdaq-listed Critical Metals Corp (CRML) has executed a term sheet to form a 50:50 joint venture (JV) with Romanian State-owned processor FPCU, paving the way for what the company says will be the first fully integrated mine-to-processing rare earths supply chain in the Western world.

The agreement gives CRML long-term rights to supply 50% of all concentrate from its Tanbreez project in Greenland to the planned Romanian processing facility, which would produce rare earth metals and military-grade magnets for European manufacturers and defence sectors. The JV structure will see CRML retain its 50% stake on a carried basis, with no requirement to issue debt or equity to fund its share of the plant’s construction.

The partnership forms part of CRML’s broader strategy to secure downstream capacity for Tanbreez output. Recent offtake agreements with ReAlloys and UCORE already account for 25% of production, and the Romanian allocation lifts committed concentrate to 75% for allied-market customers.

CRML chairperson and CEO Tony Sage said the deal marked a shift in the rare earths landscape. “This is a monumental game-changer for CRML and the entire Western world,” he said. “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.”

Romania’s Minister of Energy, Bogdan Ivan Gruia, said the partnership aligned with the European Commission’s new economic security package, which includes up to €3.5-billion in funding for critical raw materials. “Today’s signing marks far more than a bilateral collaboration; it is a direct contribution to Europe’s industrial and security architecture,” he said.

“Romania is positioning itself at the core of a fully integrated, Western-aligned supply chain – from mine to processing.”

CRML will now fold the JV terms into its updated feasibility work, which includes planned improvements to Tanbreez concentrate quality. The company is assessing a redesigned process aimed at lifting concentrate grades from 2.2% to 2.5% to above 3% total rare earth oxides. CRML said the higher-grade material would increase concentrate value and improve downstream processing quality in Romania.

The company expects to provide updated feasibility modelling, commercial parameters and timelines by the end of the first quarter of 2026.