Critical Metals Corp (Nasdaq: CRML), an American company specialising in critical minerals, and Romanian nuclear group Nuclearelectrica (BVB: SNN) announced on December 9 the signing of an agreement for the development, in Romania at Feldioara, of an industrial rare earth processing facility.

The planned facilities at Feldioara, where Nuclearelectrica operates its subsidiary Uranium Concentrate Processing Plant (FPCU), will process concentrate from the Tanbreez project in Greenland, one of the largest heavy rare earth resources in the world, and CRML will have offtake rights for 50% of the total production over the life of the mine.

CRML officials stated that the objective is to create, on Romanian territory, a "state-of-the-art" industrial unit, capable of producing aerospace and military-quality magnets, essential components in defence technology, drones, missiles, medical equipment, electric motors, transportation, and microelectronics.

It is a step considered crucial for Europe's strategic autonomy in the face of dependence on the Chinese market.

Nuclearelectrica announced that the signed document is non-binding, intended to evaluate the opportunity of establishing a joint venture.
The non-binding Term Sheet with Critical Metals Corp. (CRML) aims to evaluate the establishment of a 50%-50% joint venture for the potential commissioning of a state-of-the-art rare earth metal processing facility at FPCU Feldioara, Nuclearelectrica announced.

FPCU Feldioara and CRML will collaborate, in the coming months, based on the provisions of the Term-Sheet, to evaluate the technical and commercial basis for the establishment of a vehicle intended for the development and potential construction of a state-of-the-art rare metals processing plant in Romania.

"Exploring this possibility through this non-binding agreement has no legal and/or financial implications for FPCU Feldioara and/or Nuclearelectrica and only represents a potential that is worth exploring," the information at BVB signed by Cosmin Ghiță, CEO of Nuclearelectrica, stated.

The project is presented as a historic one: the first European link in a fully integrated chain, from ore extraction to the final production of strategic materials used in defence, advanced technology, and industry.

The new joint venture, owned in equal proportions by CRML and the Romanian state through FPCU, will transform Romania into the focal point of Western rare metals production, a field currently dominated by China, the companies said.

iulian@romania-insider.com

(Photo source: Inquam Photos / George Călin)