Critical Metals Corporation, a prominent Australian mining development company, has formed a 50/50 joint venture (JV) with the Obeikan Group.
This strategic partnership aims to construct and operate a large-scale lithium hydroxide processing facility in the Kingdom of Saudi Arabia. The plant will utilize spodumene concentrate sourced from the Wolfsberg Lithium Project in Austria.
Global Player in Strategic Minerals
Critical Metals is a leading player in the production of strategic materials essential for electrification and cutting-edge technologies in Europe and the Western world.
The newly formed JV, named Arabian New Energy, will secure exclusive rights to purchase spodumene from the current Wolfsberg resource (Zone 1). The processing facility is planned to meet the minimum initial capacity and product specifications outlined in Critical Metals’ existing supply agreement with BMW.
Strategic Location of Wolfsberg
The Wolfsberg Lithium Project is ideally situated to contribute to a localized European battery supply chain. Located 270km southwest of Vienna, Austria, this hard rock lithium deposit boasts established road and rail infrastructure, supported by a history of exploration.
Arabian New Energy will focus on developing, constructing, commissioning, and operating the lithium hydroxide processing plant. Its primary function will be the conversion of lithium spodumene concentrate from Wolfsberg into lithium hydroxide.
Agreement Terms
Under the shareholder agreement, upon successful plant commissioning, the Wolfsberg Project Zone 1 will supply lithium spodumene concentrate to the JV company throughout the lifespan of its current resources. This supply will be at a discounted rate, with floor and ceiling prices subject to final negotiation.
The parties will establish a Development Committee to jointly make crucial decisions regarding the plant’s development.
European Lithium and the Obeikan Group have executed a Deed of Assignment, transferring all rights from their May 31, 2023, binding agreement to Critical Metals Corporation.
Leadership Statements
Tony Sage, CEO and Chairman of Critical Metals Corporation, hailed the assignment of the JV as a “huge milestone” for the Wolfsberg project. He emphasized the company’s commitment to becoming Europe’s first producer of both spodumene and hydroxide, stating, “With these key milestones having been achieved, we expect the next steps will become a lot easier.”
Abdallah Obeikan, CEO of the Obeikan Investment Group, expressed enthusiasm about the partnership, highlighting the synergy of technical expertise and industrial knowledge. He emphasized the venture’s alignment with Saudi Arabia’s Vision 2030 and its contribution to advancing the kingdom’s industrial development.