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4d ago

U.S. Explores Equity Stake in Critical Metals, Owner of Greenland Rare-Earth Project

Officials are discussing converting a $50 million Defense Production Act grant into equity to advance a mine-to-magnet supply chain.

U.S. flag and Intel chip appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration
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Overview

  • The Trump administration is in preliminary talks to turn a $50 million defense grant into shares of Critical Metals, with reporting estimating a roughly 6% to 8% stake.
  • A government stake would give Washington a direct interest in Tanbreez in southern Greenland, a large rare-earth deposit tied to defense, EVs and clean energy technologies.
  • Critical Metals announced a $35 million PIPE, issuing 5 million shares and warrants for 10 million shares at a $7 strike to help fund Tanbreez development.
  • The company recently moved to raise its ownership of Tanbreez to about 92.5%, a change that requires approval from Greenland’s government.
  • Critical Metals shares jumped more than 60% after the reports, as officials emphasized the discussions remain early and no deal is finalized.