Published by Global Banking & Finance Review®
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
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Critical Metals partners with Romania's FPCU to set up a rare earth processing plant, reducing Europe's reliance on China and supporting industries like electric vehicles.
Dec 9 (Reuters) - Critical Metals said on Tuesday it will form a joint venture with Romania-based FPCU to set up a facility in the European country to process the rare earth minerals from the U.S. firm's Tanbreez mine.
Shares of the company rose 4% in premarket trading.
The company said it will supply 50% of the Tanbreez project's rare earth concentrates to the Romanian JV for the full lifespan of the mine at "mutually agreed competitive market terms".
The Tanbreez project is critical as an alternative source of heavy rare earths that are key to electric vehicles, wind turbines and defense, with Western nations working to reduce their reliance on China for these vital resources.
The facility in Romania will create a Europe-focused supply chain for rare earths, reducing the region's reliance on China, which dominates more than 80% of global processing.
"We're not just building a plant - we're dismantling China's stranglehold on rare earths and empowering Europe with secure supplies," Critical Metals CEO Tony Sage said.
The plant will make products such as aerospace and military-grade magnets, the company said.
In October, the company said it would raise $50 million through a private investment in public equity (PIPE) deal with an institutional investor to help develop its Tanbreez rare earth deposit in Greenland.
(Reporting by Katha Kalia in Bengaluru; Editing by Leroy Leo)
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing both risks and profits.
Rare earth minerals are a group of 17 chemical elements used in various high-tech applications, including electronics, renewable energy technologies, and defense systems.
A supply chain is the entire system of production, processing, and distribution of goods, from raw materials to the final consumer, involving various stakeholders.
A PIPE is a private investment firm that buys shares of publicly traded companies at a discount, providing them with immediate capital in exchange for equity.
Market reliance refers to the dependence of a region or economy on specific markets or suppliers for essential goods and services, which can impact stability and security.
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