Critical Metals Forges Strategic European Rare Earths Venture

A significant strategic partnership has been announced by Critical Metals Corp (Nasdaq: CRML), a wholly-owned subsidiary of European Lithium. The company entered into a 50/50 joint venture agreement with Romanian state-owned enterprise Fabrica de Prelucrare a Concentratelor de Uraniu S.R.L. (FPCU), a subsidiary of Nuclearelectrica. The deal, formalized via a term sheet signed at approximately 16:34 EST on December 9, 2025, aims to establish a rare earths processing facility within the European Union.

This development arrives amid growing global concerns over supply chain security. Currently, China controls more than 80% of the world's rare earths processing capacity. Concurrently, demand for lithium is surging, with industry leader Ganfeng Lithium projecting a 30 to 40 percent demand increase by 2026.

The joint venture is positioned as a direct challenge to existing market dominance. "This represents a monumental turning point for CRML and for the Western world," stated Tony Sage, CEO and Chairman of Critical Metals Corp. He emphasized that partnering with Romania, a member of both NATO and the EU, is a strategic move to diminish China's control over the critical rare earths sector.

Key commercial terms of the agreement include:
* Offtake Guarantee: The JV will receive 50% of the production from the Tanbreez project over the entire mine life.
* Secured Production: This deal brings the total contracted production to 75%, with existing agreements with UCORE (10%) and REalloys (15%) remaining in place.
* Favorable Financing: CRML retains its 50% interest in the venture without any capital expenditure, requiring no debt or equity raises.
* End Product: The planned facility will be designed to produce aerospace-grade magnetic materials.

The partners intend to pursue funding from the EU's recently announced €3.5 billion package dedicated to rare earths projects.

Should investors sell immediately? Or is it worth buying European Lithium?

Market Activity and Technical Advancements

In anticipation of this announcement, European Lithium requested a trading halt on the ASX on Tuesday, December 9, 2025, citing Listing Rule 17.1. The suspension is effective until the pending announcement is made public or until Thursday, December 11, 2025, at the latest.

Prior to the halt, the company's shares closed at AUD 0.190 on Monday, marking a 5.00 percent decline. The session's trading range was between AUD 0.190 and AUD 0.205. The 52-week high for the stock stands at AUD 0.485, with a low of AUD 0.034.

On the operational front, Critical Metals Corp is focused on process optimization. The goal is to enhance the concentrate grade from 2.2-2.5% to over 3% Total Rare Earth Oxides (TREO) in its Eudialyte concentrates, which would significantly increase the value of the sold material. An update, including revised timelines, is expected by the end of Q1 2026.

The coming months will see both parties finalize the technical and commercial framework for the project. This includes plant design, development strategy, and marketing plans for the processed output. An updated feasibility study for the overall project is anticipated in 2026.