Critical Metals announces $1.85 billion investment for rare earth refinery in Romania

Critical Metals is set to invest $1.85 billion in a rare earth refinery located in Feldioara, Romania. This ambitious project, developed in partnership with the state-owned company Nuclearelectrica, aims to bolster the country's capacity in processing critical metals.

The refinery is expected to process up to 100,000 tons of eudialite concentrate annually, potentially producing around 27,943 tons of rare earth products and critical metals each year. This could lead to significant economic benefits, with Critical Metals estimating annual revenues of approximately $2.2 billion before operating costs, taxes, and capital recovery.

The primary shareholder of Critical Metals Corp is European Lithium, which is indirectly controlled by Frank Timiș, known for founding the Roșia Montană business. Tony Sage, an Australian businessman, serves as the CEO of Critical Metals Corp, guiding the company's vision and operations.

In December 2025, Nuclearelectrica announced a joint venture agreement with Critical Metals for the establishment of a new processing facility. While Nuclearelectrica has emphasized the need for thorough technical, financial, and legal analyses before proceeding, Critical Metals asserts that the proposed refinery will receive 50% of the total concentrate production from the Tanbreez project in Greenland, which they control.

Critical Metals plans to utilize innovative processing technologies that could dissolve over 99% of the eudialite concentrate, yielding 19 rare earth products with purities of up to 99.9%-99.99%. The company estimates that by-products from silica could generate additional revenues of around $600 million annually.

With a projected internal rate of return of approximately 55% and a payback period of about two years, the financial outlook for the Feldioara refinery appears promising. The estimated capital expenditures stand at $1.85 billion, with a potential variance of plus or minus 25%.

Critical Metals, registered in the British Virgin Islands in 2022, listed on the NASDAQ in 2024 and has signed an agreement to acquire European Lithium for approximately $835 million. This transaction is expected to be finalized in November, further solidifying Critical Metals’ position in the market.

While Nuclearelectrica has stated that no funds have yet been allocated for the project and that the prefeasibility study has not been validated, the collaboration between these companies could mark a significant step forward for Romania's rare earth industry.