Dec 9 (Reuters) - Critical Metals said on Tuesday it will form a joint venture with Romania-based FPCU to set up a facility in the European country to process the rare earth minerals from the U.S.
Critical Metals and FPCU to Establish Rare Earth Plant in Romania
Dec 9 (Reuters) - Critical Metals said on Tuesday it will form a joint venture with Romania-based FPCU to set up a facility in the European country to process the rare earth minerals from the U.S. firm's Tanbreez mine.
Shares of the company rose 4% in premarket trading.
The company said it will supply 50% of the Tanbreez project's rare earth concentrates to the Romanian JV for the full lifespan of the mine at "mutually agreed competitive market terms".
The Tanbreez project is critical as an alternative source of heavy rare earths that are key to electric vehicles, wind turbines and defense, with Western nations working to reduce their reliance on China for these vital resources.
The facility in Romania will create a Europe-focused supply chain for rare earths, reducing the region's reliance on China, which dominates more than 80% of global processing.
"We're not just building a plant - we're dismantling China's stranglehold on rare earths and empowering Europe with secure supplies," Critical Metals CEO Tony Sage said.
The plant will make products such as aerospace and military-grade magnets, the company said.
In October, the company said it would raise $50 million through a private investment in public equity (PIPE) deal with an institutional investor to help develop its Tanbreez rare earth deposit in Greenland.
(Reporting by Katha Kalia in Bengaluru; Editing by Leroy Leo)
