European Lithium Ltd (ASX:EUR, OTCQB:EULIF)'s 100% owned subsidiary Critical Metals Corp (Nasdaq: CRML) has executed a term sheet to establish a 50:50 joint venture with Fabrica de Prelucrare a Concentratelor de Uraniu S.R.L. (FPCU) of Romania.
FPCU is a Romanian state-owned entity and strategic partner from a European Union and NATO member country. The JV will secure 50% of the offtake from the Tanbreez rare earth element (REE) concentrate, increasing total contracted offtake from the Tanbreez Project to 75% of future production.
“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 defence and national security needs," Tony Sage, CEO and chairman of CRML, said.
"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.
"Both CRML and the Romanian government will now apply for the recently announced €3.5 billion package for the supply of rare earth metals to the EU."
Transaction highlights
- Supply and processing partnership: CRML has executed a term sheet covering offtake, financing and development, including the creation of a 50/50 joint venture to build and operate a rare earth processing plant within the European Union, providing an alternative to China’s dominant position in global rare earth processing.
- Financing structure: CRML will not issue debt or equity to fund the joint venture. It will retain a 50% interest in the joint company on a carried basis and will not be required to contribute capital expenditure for construction of the facility.
- Magnet production: The planned facility is expected to produce a range of finished products, including aerospace and military-grade rare earth magnets.
- Strategic offtake: CRML will supply 50% of the Tanbreez Project’s premium rare earth concentrates (REECs) to the Romanian JV for the life of mine, providing a secure, NATO-aligned feedstock source for downstream European industries.
- Joint venture platform: The 50/50 partnership between CRML and state-owned FPCU is intended to support the development of an independent, secure and Western-aligned supply chain for critical minerals.
- Offtake position: Including prior agreements with Ucore and ReAlloys (10% and 15% respectively), this 50% allocation increases the proportion of Tanbreez rare earth concentrate committed under long-term offtake agreements with allied nations to 75%.
CRML–FPCU JV moves forward to establish EU rare earth processing hub
CRML and FPCU will work over the coming months, as outlined in the term sheet, to finalise the technical and commercial framework for a 50/50 JV that is intended to develop and potentially construct a rare earth processing plant in Romania. The proposed facility would process high-grade Tanbreez concentrate into rare earth metals and advanced materials for use within the European Union, with the aim of supporting national security, advanced manufacturing, electrification and defence applications.
Under the term sheet, the JV is expected to secure exclusive rights to 50% of Tanbreez’s current resource, creating a Europe-focused supply chain that reduces reliance on China, which currently accounts for more than 80% of global rare earth processing, and helping to mitigate geopolitical risk for the EU.
Once mining operations at Tanbreez are commissioned, CRML will supply 50% of the project’s concentrate to the Romanian JV for the life of the resource, on mutually agreed, competitive market terms. A dedicated development committee will oversee plant design, development strategy and the commercialisation of processed products.
“This joint venture represents a defining step for Nuclearelectrica, FPCU, and for Romania’s strategic industrial capabilities. By combining the unique technical expertise, infrastructure, and highly qualified workforce at Feldioara with the world-class Tanbreez resource, we are building one of Europe’s most advanced processing platforms for critical minerals," Cosmin Ghiță, CEO of Nuclearelectrica (100% shareholder of FPCU), said.
"This strategic initiative is perfectly aligned with the 10-year development strategy approved last year for FPCU, anchored in technological modernisation, integration into European value chains, and the production of high-value-added materials. The new JV directly materialises these goals: a modern facility capable of producing rare earth metals and military-grade magnet products essential for defence, energy, and high-tech manufacturing.
"Feldioara carries a long-standing heritage in processing strategic concentrates. This project not only preserves that legacy — it elevates it to the next level, turning FPCU into a key pillar of Europe’s mineral security. We are honoured to collaborate with Critical Metals Corp. on a project with significant strategic impact for Romania, for the European Union, and for our NATO allies.”
CRML advances high-grade concentrate strategy under Romanian refining agreement
CRML has signed a landmark agreement with the Romanian Government to refine rare earth elements into aerospace- and military-grade salts, metals and magnets.
In consultation with its Romanian offtake partners, CRML has identified the need to increase the grade of concentrate produced in Greenland to ensure the strongest mine-to-metal economics. To achieve this, the company is assessing a redesigned processing flowsheet incorporating enhanced polishing and recovery steps. The revised approach is expected to lift concentrate grades from 2.2–2.5% to more than 3% TREO in eudialyte concentrate, significantly increasing the value of material sold and improving salt quality at the refinery.
CRML will incorporate the proposed processing and mine-plan changes into an updated feasibility study model, along with revised commercial modelling and return-on-investment metrics. The company expects to update the market by the end of Q1 2026 with progress, revised timelines and results from the improved testwork program.
“In a moment when the European Union is accelerating its strategic initiatives in the field of critical raw materials and secure supply chains — including the recently presented package in Brussels, amounting to up to $3.5 billion and forming part of the European Commission’s broader Economic Security Strategy to strengthen autonomy and reduce external dependencies — Romania is stepping forward as a regional contributor and a reliable partner for the entire Euro-Atlantic community," Cosmin Ghiță, CEO of Nuclearelectrica said.
"Today’s signing marks far more than a bilateral collaboration; it is a direct contribution to Europe’s industrial and security architecture. In a world where access to critical minerals has become a defining geopolitical battleground, Romania is positioning itself at the core of a fully integrated, Western-aligned supply chain — from mine to processing.
"This strategic initiative, advanced through the partnership between Critical Metals Corp. and FPCU under this Term Sheet, places Romania at the forefront of Europe’s efforts to secure the strategic materials necessary for defense, clean energy, and next-generation technologies.
"Romania has both the responsibility and the opportunity to help rebalance global supply chains for rare earth elements. We fully support this initiative, which strengthens the European Union’s strategic autonomy and demonstrates Romania’s capacity to become an industrial and security pillar for our region and for our allies.”
About FPCU
FPCU, a subsidiary of Nuclearelectrica, Romania’s state-owned nuclear energy company, is a specialist European processor of strategic mineral concentrates with decades of experience in refining, conversion, hydrometallurgy and the production of high-purity materials.
FPCU plays an important role in Romania’s integrated nuclear fuel cycle and is known for its technical workforce, strict quality controls and established operational track record. As demand for rare earths grows, FPCU is positioned to support the development of secure, value-added European supply chains.
About Critical Metals Corp
Critical Metals Corp is a mining development company focused on critical metals and minerals for electrification and next-generation technologies in Europe and allied markets.
Its flagship Tanbreez Project in southern Greenland is one of the world’s largest rare earth deposits, with expected year-round access to deep-water fjords connecting directly to the North Atlantic Ocean.
The company also owns the Wolfsberg Lithium Project in Carinthia, Austria, located 270 km south of Vienna. Wolfsberg is the first fully permitted lithium mine in Europe, with access to established road and rail infrastructure and offtake and downstream partnerships aimed at supplying lithium products to the European market.
With this portfolio, Critical Metals Corp aims to supply critical minerals for defence, the energy transition, and advanced technologies in Western markets.