Critical Metals plans $1.5B rare earths JV in Saudi Arabia

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 (nearly SAR 5.6 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.