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Critical Metals Corp (Nasdaq: CRML) announced Tuesday it has finalized a deal with Saudi Arabia’s Obeikan Group to form a joint venture to construct and commission a large-scale lithium hydroxide processing plant in the Kingdom.
The 50/50 JV will be geared towards developing, constructing and operating the plant for the conversion of lithium spodumene concentrate from Critical Metals’ Wolfsberg project in Austria, which, according to Critical Metals CEO Tony Sage, is set to become the EU’s only battery-grade lithium mine by 2027.
The deal creates 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.
Wolfsburg is Europe’s first fully permitted lithium mine, and although a definitive feasibility study was produced in 2023, the construction of the hydroxide plant may now be less expensive than the original DFS reported, Sage told MINING.com in an interview in March, when European Lithium merged with Sizzle Acquisition Corp to create Critical Metals.
“The assignment of this JV to Critical Metals Corp represents another huge milestone for the Wolfsberg project,” Sage stated in Tuesday’s news release.
“Critical Metals Corp has two dedicated partners to ensure we fulfill 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.”
Over the next several quarters, the company plans 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 expected to be sourced from within Saudi Arabia.
The news comes just a month after Critical Metals announced it will acquire a controlling stake in the world’s biggest rare earth project, the Tanbreez in Greenland.
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