U.S. Weighs Stake in Greenland Rare Earths Project Amid Strategic Push

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Jarrett Renshaw, and Gram Slattery/File Photo

The Trump administration is in talks to take an equity stake in Critical Metals Corp. (CRML.O), which controls Greenland’s largest rare earths project, according to four people familiar with the discussions. If completed, the deal would give Washington a direct interest in the Tanbreez deposit, a site that has drawn global attention since former President Donald Trump floated the idea of buying Greenland in 2019.

The negotiations follow Washington’s recent investments in Lithium Americas and MP Materials, underscoring efforts to secure supply chains for critical minerals essential to technologies ranging from electric vehicles to missile systems. Rare earths are a key focus for Western governments seeking to reduce dependence on China, which dominates global extraction and processing.

Critical Metals acquired Tanbreez last year for $5 million in cash and $211 million in stock. The company has since applied for a $50 million grant under the Defense Production Act. In recent weeks, administration officials have discussed converting that grant into an equity stake, potentially around 8% of the company, though the size and structure remain under negotiation. Sources said warrants and a possible $120 million loan from the U.S. Export-Import Bank are also part of the talks.

A senior administration official, asked about the discussions, stressed that “nothing is close with this company at this time.” Critical Metals did not respond to requests for comment.

The Tanbreez project, expected to cost $290 million to develop, aims to produce 85,000 metric tons of rare earth concentrate annually by 2026. The site also contains gallium and tantalum, metals with growing strategic importance.

Despite its potential, Greenland’s mining sector has faced investor hesitation, environmental scrutiny, and logistical challenges. U.S. officials, however, see the project as part of a broader push to build secure mineral supply chains away from Chinese control.