Critical Metals Soars 75% on Potential US Gov't Stake
Investment would secure access to Greenland's vast Tanbreez rare earth deposit, bolstering US critical mineral supply chains.
Shares of Critical Metals Corp (CRML) surged over 75% in pre-market trading following reports that the U.S. government is considering taking an equity stake in the company to secure access to its massive rare earth project in Greenland.
The potential investment underscores a strategic push by Washington to build a secure supply chain for critical minerals, which are , clean energy technology, and high-tech manufacturing, reducing the nation's heavy reliance on China.
According to a Reuters report, discussions are centered on the U.S. government potentially acquiring a stake in Critical Metals, which recently increased its ownership of the Tanbreez rare earth deposit in southern Greenland to 92.5%. The move is part of a broader government strategy that has seen investments in other key players in the sector, signaling a clear policy to onshore the production of materials .
The Tanbreez project is recognized as , notably rich in heavy rare earths. These elements are crucial for producing the powerful permanent magnets used in everything from F-35 fighter jets and precision-guided munitions to wind turbines and electric vehicles.
The potential deal highlights the geopolitical significance of Greenland's mineral resources. A direct U.S. government investment would significantly de-risk the Tanbreez project, providing a strong endorsement and the financial backing needed to advance development. For Critical Metals, a government partnership would validate its asset's strategic importance and position the company as a key future supplier in a Western-led, mine-to-magnet supply chain. The follows previous diplomatic efforts to ensure the Greenland-based asset remained in friendly hands, away from Chinese control.
Investors reacted swiftly to the news, sending CRML shares soaring on elevated volume as the market priced in the implications of direct U.S. government backing for the ambitious Greenland mining operation.