Critical Metals shares plunged 8.10% as joint venture and production delays weigh on investor sentiment.

Dec. 18, 2025 — Critical Metals shares plunged 8.10% in pre-market trading as investor sentiment shifted amid mixed signals from recent developments. The stock’s sharp decline contrasts with its earlier momentum, raising questions about market confidence in its strategic initiatives.

Recent announcements highlight a pivotal 50/50 joint venture with Romania to establish a rare earth supply chain, aiming to bolster European manufacturing and national security sectors. However, the partnership’s timing coincides with ongoing challenges in scaling production at its Tanbreez project, where metallurgical test results have yet to translate into commercial output. Analysts note that while the venture strengthens long-term positioning, execution risks and regulatory hurdles remain under scrutiny.

Environmental approvals secured for Tanbreez and promising drilling results—including niobium pentoxide and cerium dioxide—underscore resource potential. Yet, delays in initial production, initially targeted for 2026, have fueled short-term volatility. The market appears to be recalibrating expectations as the company navigates complex processing requirements and geopolitical dynamics in critical minerals supply chains.

Investors are now weighing whether the partnership and project updates will catalyze sustained growth or if near-term operational bottlenecks will persist. The stock’s performance reflects heightened sensitivity to progress timelines and global demand forecasts for rare earth elements.