Finance
Critical Metals eyes Saudi JV to refine rare earths from Greenland
Published by Global Banking & Finance Review®
Posted on January 15, 2026
2 min readLast updated: January 19, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 15, 2026
2 min readLast updated: January 19, 2026
Critical Metals plans a Saudi JV to refine rare earths from Greenland's Tanbreez mine, supporting U.S. defense needs and highlighting Greenland's mineral potential.
By Ernest Scheyder
Jan 15 (Reuters) - Critical Metals Corp said on Thursday it may build a refinery with a Saudi Arabian partner to process rare earths from its planned Tanbreez mine in Greenland, with refined material going to supply the U.S. defense sector.
The move further highlights the critical minerals potential of Greenland - technically part of Denmark - even as U.S. President Donald Trump has grown increasingly vocal about his desires to take control of it for national security reasons.
New York-based Critical Metals said it has signed a non-binding term sheet with Saudi's Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers for a joint venture that would refine 25% of the planned capacity from Tanbreez's rare earths in the kingdom.
The agreement, if finalized, would give Critical Metals guaranteed customers and likely ease its path to full financing for the project, estimated to cost $290 million to start production by next year.
Critical Metals had already pre-sold 75% of planned output, split between the U.S. and Europe, meaning the company's production in Greenland is spoken for.
Both companies said they will work to finalize the deal "over the coming months."
"We see a strong opportunity to work closely with partners in the United States to responsibly develop and deploy these materials in support of next-generation technologies," Abdulmalik Tariq Al-Qahtani, Tariq's CEO, said in a statement.
The Saudi refinery would send refined rare earths to the United States, where they would need to be turned into magnets that could be used for military purposes.
The agreement comes the day after Denmark's foreign minister and his Greenlandic counterpart met with U.S. Secretary of State Marco Rubio at the White House to discuss Greenland's future, talks that centered on the island's strategic location and minerals.
Meanwhile, Trump administration officials are considering a $120 million loan from the U.S. Export-Import Bank for the Tanbreez project.
(Reporting by Ernest Scheyder in Houston; Additional reporting by Tanay Dhumal in Bengaluru; Editing by Vijay Kishore and Andrea Ricci )
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 profits, losses, and control.
Rare earths are a group of 17 chemical elements used in various high-tech applications, including electronics, renewable energy technologies, and defense systems.
Financing refers to the process of providing funds for business activities, making purchases, or investing. It can come from various sources, including loans, equity, or grants.
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