Critical Metals Corp. (Nasdaq: CRML) announced details of a proposed rare earth refinery in Romania, projecting annual revenue of approximately $2.2 billion based on current modeling, according to a company statement.

The proposed facility, structured as a joint venture, is designed to process up to 100,000 tons per year of eudialyte concentrate sourced from the company's Tanbreez project in Greenland. Current modeling projects annual output of approximately 27,943 tons of rare earth and critical metal products in the form of chloride salts and other high-purity materials.

The preliminary capital expenditure estimate is $1.85 billion, with a Class 4 accuracy range of plus or minus 25%. Current modeling indicates a net present value at a 10% discount rate of approximately $4.5 billion, an internal rate of return of approximately 55%, and a projected payback period of approximately two years.

The refinery design incorporates three process features, including a multistage mixed-acid reactor system with a pending patent, silica recovery targeting 99.99% SiO2 powder production, and vacuum freeze-drying of chloride salts. Projected silica by-product output is approximately 25,670 tons per year, with modeled annual revenue from that stream of up to $600 million.

Operating costs are currently estimated at approximately $3,500 to $4,000 per ton of concentrate processed. The refinery is expected to receive 50% of concentrate production under an existing term sheet.

The proposed facility would be located in Romania, an EU and NATO member state. Energy requirements are estimated at up to 150 megawatts, with approximately 60% to 70% expected to come from gas-fired sources.

All projections remain subject to further engineering, metallurgical test work, permitting, market conditions, and final investment decisions. The company has not yet completed a feasibility study.