Critical Metals Joins European Lithium-Obeikan for Saudi Lithium Hydroxide Plant
Critical Metals Corporation, an Australian mining development company, has partnered with European Lithium-Obeikan Group to build and commission a large-scale lithium hydroxide processing plant in Saudi Arabia. This facility will process spodumene concentrate from the Wolfsberg Lithium Project in Austria.
Critical Metals, a significant global player, focuses on producing strategic products essential for electrification and next-generation technologies in Europe and the Western world. The joint venture, named Arabian New Energy, will operate under a 50-50 agreement, securing the exclusive right to purchase spodumene mined from Wolfsberg. This plant will meet the minimum initial capacity and product specifications based on Critical Metals’ supply agreement with BMW.
Wolfsberg, located 270km southwest of Vienna in Carinthia, Austria, is a hard rock lithium deposit supported by historical exploration and connected to road and rail infrastructure. The new joint venture aims to develop, construct, and commission the lithium hydroxide processing plant, ensuring the conversion of lithium spodumene concentrate from Wolfsberg.
According to the shareholders' agreement, Wolfsberg Project Zone 1 will sell lithium spodumene concentrate to Arabian New Energy at a reduced rate, with a floor and ceiling price subject to final agreement. A Development Committee will be established to collaborate on all key decisions related to the plant's development.
European Lithium and Obeikan Group have executed a Deed of Assignment to transfer all rights under a May 31, 2023 binding agreement to Critical Metals Corporation. Tony Sage, CEO and Chairman of Critical Metals Corporation, highlighted this JV as a significant milestone for the Wolfsberg project, reinforcing their ambition to become the first European producer of both spodumene and hydroxide.
Sage mentioned that the next steps involve updating and finalizing the DFS on these projects and securing the necessary funding for construction. The Board of Arabian New Energy will oversee the construction of the hydroxide plant, with project funding sourced from within Saudi Arabia.
Abdallah Obeikan, CEO of Obeikan Investment Group, expressed optimism about the joint venture, emphasizing its potential benefits for all stakeholders and its alignment with Saudi Arabia's Vision 2030 to advance new industry development in the Kingdom.
