Mentioned:
Critical Metals has just done a new deal with Romania. And together they’re aiming to reshape the future of rare earth elements in Europe.
What’s happening:
- Critical Metals (NASDAQ: CRML) has formed a new joint venture with Romanian state owned company FPCU to build a rare earth processing plant in Romania
Why it matters:
- The new joint venture between FPCU and Critical Metals is aiming to develop Europe’s first ever fully integrated supply chain for processing rare earth elements and producing rare earth magnets
Going deeper:
- Critical Metals will grant FPCU an offtake deal for 50% of all the rare earth oxide production from their flagship Tanbreez project located in Greenland as part of the new joint venture
- Critical Metals is not issuing any debt or equity as part of the joint venture and will not be required to provide any capital to build out the new rare earth processing plant
The intrigue:
- FPCU and Critical Metals have publicly stated they plan to apply for €3.5B in critical materials funding as part of the European Union’s new focus on rare earth independence
