Critical Metals Corp. (NASDAQ:CRML) traded 5% higher in premarket action Tuesday after revealing it has signed a term sheet to establish a 50-50 joint venture with Romania’s state-owned Fabrica de Prelucrare a Concentratelor de Uraniu S.R.L. (FPCU).
The pact grants the U.S.-listed miner long-term rights to purchase half of the concentrate produced from its Tanbreez project, while also laying the groundwork for a rare earth processing plant in Romania. If realized, the venture would represent the first end-to-end rare earth mining and processing supply chain in the Western world.
Critical Metals will maintain its 50% stake in the joint venture on a carried basis, meaning it will not need to contribute capital to construct the facility. The proposed plant would be capable of producing aerospace- and defense-grade magnets, offering a Western alternative to China’s dominant rare earth processing industry.
With this latest term sheet, Critical Metals now has 75% of its Tanbreez concentrate output tied up under long-term offtake agreements. Previously disclosed deals include 10% with UCORE and 15% with ReAlloys.
CEO and Chairman Tony Sage described the agreement as “a monumental game-changer” that will help break “China’s stranglehold on rare earths” and strengthen Europe’s ability to secure critical materials vital for defense and national security.
Alongside the JV news, the company said it is evaluating a revised processing approach that could boost concentrate grades from 2.2%–2.5% to above 3% TREEs in eudialyte concentrate, a shift that would materially lift the value of each tonne produced. Critical Metals expects to provide an update on technical developments and revised timelines before the end of the first quarter of 2026.