Critical Metals Corp (CRML), a leading critical minerals mining company, on Friday  announced that it has executed a non-binding term sheet for the formation of a 50/50  joint venture with Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (TQB), a globally diversified industrial conglomerate group based in Saudi Arabia.

The term sheet outlines the framework for the development, financing, construction, and operation of a $1.5 billion state-of-the-art rare earth processing facility in Saudi Arabia, creating a fully integrated mine-to-processing supply chain. 

The transaction includes long-term offtake rights for 25% of the Tanbreez Project’s rare earth concentrate production to Saudi Arabia, supporting secure supply for advanced manufacturing, energy transition, and defence-related industries across allied markets.

TRANSACTION HIGHLIGHTS

• Integrated supply & processing partnership: Execution of a term sheet covering offtake, project financing, development, and the formation of a 50/50 joint venture to construct and operate a rare earth processing facility in Saudi Arabia, directly expanding non-Chinese global processing capacity.

• Strategic defence supply chain: The partnership will send all finished materials to the United States of America for use in the defence industrial complex of the USA.

• Capital-efficient structure: CRML will not issue equity or incur debt in connection with the JV and will retain its 50% ownership interest on a carried-interest basis, with no capital expenditure obligations related to construction of the processing facility.

• Strategic offtake: The JV framework provides for 25% of the Tanbreez Project’s rare earth concentrate production to be supplied to Saudi Arabia for the life of mine, under long-term, market-based commercial terms.

• Advanced products: The processing facility is expected to produce separated rare earth oxides, metals, and downstream products, including magnet-grade materials suitable for aerospace, defence, and high-performance industrial applications.

• Supply chain security: The partnership establishes a resilient and long-term partnership, geopolitically diversified supply chain linking Western-aligned upstream resources with Middle Eastern downstream processing capacity.

• Fully contracted offtake profile: With the addition of this 25% long-term offtake commitment to Saudi Arabia, and together with previously announced agreements, 100% of the Tanbreez Project’s rare earth concentrate production is now allocated under long-term offtake arrangements, providing full revenue visibility and securing supply to strategic, allied markets for the life of mine.

Under the terms of the agreement, CRML and TQB will work collaboratively over the coming months to finalise the technical, commercial, and regulatory foundations of the JV, including plant design, development timelines, product specifications, and commercialisation strategy.

Upon commencement of mining operations at the Tanbreez Project, CRML expects to supply 25% of produced rare earth concentrates to the Saudi-based JV for the full life of mine. A jointly governed development committee will oversee engineering, construction, commissioning, and market entry for processed rare earth products, said the statement.

This partnership represents a significant step in diversifying global rare earth processing capacity, reducing reliance on China-dominated supply chains, and positioning CRML as a cornerstone supplier to allied industrial, energy transition, and national security markets.

Abdulmalik Tariq Al-Qahtani, CEO of Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company., commented: “Following the successful official visit of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, to the United States, we are pleased to announce the signing of a memorandum of understanding focused on cooperation in the development of critical materials.

“This memorandum of understanding reflects the strength of the strategic partnership between the Kingdom of Saudi Arabia and the United States, and the shared commitment of both nations to advancing global economic growth, innovation, and technological leadership.

“Critical materials — sourced from strategically important regions including Greenland and other resource-rich jurisdictions — form the foundation of modern technologies across energy, advanced manufacturing, artificial intelligence, defence, and data infrastructure. Securing diversified and resilient supply chains for these materials is essential to long-term technological progress.

“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 that strengthen supply chains, support innovation, and improve quality of life globally.

“This agreement represents a meaningful step in deepening Saudi-U.S. industrial cooperation and aligns with the Kingdom’s economic transformation objectives and its commitment to building globally competitive value chains with trusted international partners,” he said.

Tony Sage, Chairman of Critical Metals Corp., commented: “This agreement represents a transformational milestone for Critical Metals Corp. By partnering with a leading Saudi Arabian industrial group and securing long-term offtake that brings Tanbreez to 100% committed production, we have effectively de-risked the project’s commercial pathway from mine to market. The establishment of an integrated processing platform in Saudi Arabia not only diversifies global rare earth processing capacity beyond China but also strengthens supply chain security for allied nations across Europe, the Middle East, and beyond. This transaction positions CRML as a cornerstone supplier of critical minerals essential to advanced manufacturing, energy transition technologies, and national security applications for decades to come.”  -TradeArabia News Service