11:46 AM EDT, 07/09/2024 (MT Newswires) -- Critical Metals (CRML) said Tuesday it has signed a deal with Obeikan Group after accepting the assignment of European Lithium's interest in a joint venture seeking to build a large-scale lithium hydroxide processing plant in Saudi Arabia.

Critical Metals and Obeikan Group executed a shareholders agreement for the 50-50 joint venture company, Arabian New Energy, which will oversee the construction of the lithium hydroxide plant.

Funding for the plant will be sourced from within Saudi Arabia, according to Critical Metals Chief Executive Tony Sage, without disclosing the project cost.

Critical Metals said Arabian New Energy will seek the exclusive right to buy spodumene from the Wolfsberg mine, a project wholly owned by European Lithium.

European Lithium holds 83% of ordinary shares in Critical Metals.

Shares of Critical Metals rose 3.2% in recent trading.

Price: 10.06, Change: +0.31, Percent Change: +3.18