Critical Metals partners with Romania's FPCU to set up rare earth processing plant

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)