European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has moved to fully lock in future revenues from its flagship Tanbreez rare earths project in Greenland, after its US-listed associate Critical Metals Corp. secured the final 25% of long-term offtake through a proposed Saudi Arabian joint venture.
In an ASX update on Friday, European Lithium said CRML had executed a non-binding term sheet with Saudi industrial conglomerate Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (TQB) to form a 50:50 joint venture covering downstream rare earth processing and offtake.
The agreement provides long-term offtake rights for 25% of rare earth concentrate production from the Tanbreez Project, completing CRML’s offtake book and bringing total committed sales to 100% of anticipated production over the life of mine.
Under the proposed structure, the JV would develop, finance and operate a state-of-the-art rare earth processing facility in Saudi Arabia, with finished products destined for use in the United States defence industrial supply chain. CRML would retain a 50% interest in the facility on a carried basis, with no equity issuance or debt required to fund construction.
European Lithium holds just under 45% of Critical Metals Corp and said the latest agreement further strengthens the strategic and financial value of its investment. Based on CRML’s most recent closing share price, European Lithium’s stake is valued at about US$915 million.
Final offtake secured
The Saudi deal represents the final piece in Tanbreez’s commercial strategy, following earlier offtake agreements that had already allocated 75% of planned production to Western-aligned partners.
With all concentrate volumes now tied to long-term, market-based contracts, CRML has effectively removed a key commercial risk from the project ahead of development.
According to CRML, the Saudi processing facility is expected to produce separated rare earth oxides, metals and magnet-grade materials suitable for aerospace, defence and high-performance industrial applications, while expanding non-Chinese global processing capacity.
The JV partners will now work to finalise technical design, development timelines, product specifications and regulatory approvals over the coming months.
Strategic supply chain focus
The agreement is framed around strengthening allied supply chains for critical materials, linking upstream rare earth resources in Greenland with downstream processing in the Middle East and end-markets in the US.
CRML chairman Tony Sage described the transaction as a “transformational milestone” that has “effectively de-risked the project’s commercial pathway from mine to market”.
“The establishment of an integrated processing platform in Saudi Arabia not only diversifies global rare earth processing capacity beyond China but also strengthens supply chains for allied nations across Europe, the Middle East and beyond,” he said. “This transaction positions CRML as a cornerstone supplier of critical minerals essential to advanced manufacturing, energy transition technologies and national security applications for decades to come.”
CRML and Saudi partner TQB said the proposed JV aligned with the Kingdom of Saudi Arabia’s Vision 2030 objectives and reflected deepening industrial cooperation between Saudi Arabia and the United States.
“Following the successful official visit of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, to the United States, we are pleased to announce the signing of a memorandum of understanding focused on cooperation in the development of critical materials,” TQB CEO Abdulmalik Tariq Al-Qahtani said.
“We see a strong opportunity to work closely with partners in the United States to responsibly develop and deploy these materials in support of next-generation technologies that strengthen supply chains, support innovation, and improve quality of life globally.”
Momentum builds at Tanbreez
The offtake announcement follows a busy week of updates from European Lithium and Critical Metals Corp at Tanbreez.
Earlier this week, European Lithium reported the first assay results from its 2025 drilling campaign, confirming consistent rare earth grades and strong continuity across the Fjord and Upper Fjord areas, supporting plans for a revised mineral resource estimate.
Read more: European Lithium reports ‘outstanding’ rare earth continuity at Tanbreez in first 2025 assays
CRML has also begun construction of a pilot plant in Greenland and recently secured an integrated mobile laboratory to bring laboratory-grade rare earth analysis on site, accelerating test work and development timelines.
Read more: European Lithium-linked CRML brings laboratory-grade REE analysis on site at Tanbreez
Taken together, the latest agreements and operational milestones further advance Tanbreez toward development, while giving European Lithium increased exposure to a fully contracted, strategically significant rare earths supply chain.