Spanish engineering and technology company Técnicas Reunidas has signed a collaboration agreement with Australian mining company Osmond Resources to develop a rare earth processing project in southern Spain. The partnership aims to establish what could become the European Union’s first vertically integrated production facility for mixed rare earth carbonates and rare earth oxides, strengthening Europe’s strategic supply of critical raw materials.
The project will be developed in the province of Jaén as part of the Orion EU Critical Minerals Project, which covers more than 220 km² in northern Jaén. The initiative seeks to process rare earth-bearing minerals—particularly monazite—containing valuable elements such as neodymium, praseodymium, and dysprosium. These elements are essential for advanced technologies including electric vehicles, permanent magnets, renewable energy systems, and electronic devices.
Under the agreement, Osmond Resources will own the processing facility, while Técnicas Reunidas will contribute engineering, procurement, and construction (EPC) services together with its proprietary hydrometallurgical technology known as RARETECH. This technology enables the production of rare earth products in the form of mixed carbonates and oxides through advanced solvent extraction processes. The total investment in the project is expected to range between €200 million and €300 million, depending on the final project scope.
The collaboration also aligns with broader European efforts to secure domestic supply chains for critical raw materials. Currently, a large share of global rare earth production and reserves is concentrated in a limited number of countries, creating geopolitical supply risks. By establishing local mining and processing capabilities, the project could significantly reduce Europe’s reliance on imported rare earth materials and support the region’s energy transition and advanced manufacturing sectors.
Beyond the initial development of the Orion project, both companies view the agreement as a potential starting point for further cooperation in other critical mineral projects. The facility is expected to play an important role in the emerging European value chain for permanent magnets, batteries, and clean energy technologies, positioning Spain as a new hub for critical raw materials processing in Europe.
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