Critical Metals Corporation, a leading mining development company based in Australia, has joined forces with European Lithium-Obeikan Group for the construction and commissioning of a large-scale lithium hydroxide processing plant in the Kingdom of Saudi Arabia to process spodumene concentrate produced from the Wolfsberg Lithium Project located in Austria.
A major global player, Critical Metals focuses on producing strategic products essential to electrification and next generation technologies for Europe and its western world partners.
The 50-50 JV deal will create a new company, Arabian New Energy, that will seek the exclusive right to purchase spodumene mined from the current resource at Wolfsberg, and the facility is expected to be developed to meet the minimum initial capacity and product specifications based on Critical Metals’ supply agreement with BMW.
The Wolfsberg Lithium Project is ideally located to produce local lithium into an integrated European battery supply chain.
Located 270km southwest of Vienna, in Carinthia, Austria, Wolfsberg is a hard rock lithium deposit, that is connected to road and rail infrastructure, supported by historical exploration.
The new firm, Arabian New Energy, will be geared towards developing, constructing and commissioning a lithium hydroxide processing plant, and operating the plant for the conversion of lithium spodumene concentrate from Wolfsberg.
Under the shareholders agreement, and subject to the successful commissioning of the plant, the Wolfsberg Project Zone 1 will sell the lithium spodumene concentrate to the JV company over the life of the current resources of the Wolfsberg mine at a reduced rate, with a floor and ceiling price subject to final agreement of the Parties.
The parties will establish a Development Committee for the purpose of jointly collaborating on all key decisions in relation to the development of the Plant.
A Deed of Assignment has been executed by European Lithium and Obeikan Group to assign all rights under the May 31, 2023 binding agreement to Critical Metals Corporation.
"The assignment of this JV to Critical Metals Corp represents another huge milestone for the Wolfsberg project," remarked Tony Sage, the CEO and Chairman of Critical Metals Corporation.
"Critical Metals Corp has two dedicated partners to ensure we fulfil our ambition to become the first European producer of both spodumene and hydroxide. With these key milestones having been achieved, we expect the next steps will become a lot easier," noted Sage.
"Over the next several quarters, we plan to update and finalize the DFS on these projects, and to secure the necessary funding to commence construction. The Board of the newly formed Arabian New Energy will oversee the construction of the hydroxide plant, with funding for the project sourced from within Saudi Arabia," he added.
Abdallah Obeikan, CEO of the Obeikan Investment Group, expressed delight at sealing the joint venture agreement with Critical Metals Corp.
"We are convinced that our partnership will be beneficial for all stakeholders. It will combine the solid technical expertise of Critical Metals Corp with the industrial knowledge of Obeikan while leveraging the strength of Saudi Arabian financial markets," noted Obeikan.
"It is a strategic global collaboration to achieve the goals of Vision 2030 and to advance the development of the new industry in the Kingdom of Saudi Arabia," he added.-TradeArabia News Service
