US-Saudi venture to refine rare earths from Greenland

• Preliminary deal on $1.5bn facility
• To process rare earths from Tanbreez
• Materials to supply US defence sector

Saudi Arabia’s Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (TQB) and Nasdaq-listed Critical Metals Corp have signed a preliminary agreement to build a $1.5 billion rare earth processing facility in the kingdom.

The two companies have set up an equally owned joint venture for the purpose of processing 25 percent of the anticipated rare earths from Critical Metals’ planned Tanbreez mine in south Greenland. The facility, location and capacity of the facility were not disclosed.

The refined material will be supplied to the US defence sector, Critical Metals said in a statement. 

The processing plant in Saudi Arabia is expected to produce separated rare earth oxides, metals and downstream products, including magnet-grade materials suitable for aerospace, defence and high-performance industrial applications.

Critical Metals has already pre-sold 75 percent of planned output between the US and Europe.

As part of the deal, Critical Metals and TQB will collaborate over the coming months to finalise the technical, commercial and regulatory foundations of the joint venture, including plant design, development timelines, product specifications and commercialisation strategy. 

A jointly governed development committee will oversee engineering, construction, commissioning and market entry for processed rare earth products.

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Tony Sage, chairman of Critical Metals, said the establishment of a processing platform in Saudi Arabia not only diversifies global rare earth processing capacity beyond China but also strengthens supply chain security for allied nations across Europe, the Middle East and beyond.

This week, the White House reiterated US President Donald Trump’s desire for the US to acquire Greenland, a semi-autonomous territory of Denmark, describing the move as a matter of national survival and strategic security.

In June 2025, Critical Metals received a letter of interest from the US Export-Import Bank for a loan of up to $120 million to finance its Tanbreez rare earths mine in Greenland.