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2d ago

U.S. Floats Critical Metals Stake Tied to Greenland Rare Earths as White House Tempers Expectations

Mixed signals from Washington leave any U.S. role in Tanbreez uncertain.

U.S. flag and Intel chip appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration
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USA Rare Earth's Oklahoma facility set to produce hundreds of millions of magnets.
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Overview

  • Reuters reported preliminary talks to convert a $50 million Defense Production Act grant into roughly an 8% equity stake in Critical Metals, which would give Washington exposure to the Tanbreez rare‑earth deposit in southern Greenland.
  • A White House official later said there is "absolutely nothing close" with the company and denied the administration is actively pursuing a deal, underscoring that any discussions remain early.
  • Critical Metals separately announced a $35 million PIPE financing with an institutional investor, issuing 5 million shares and warrants for 10 million shares at a $7 strike to support Tanbreez development.
  • CRML shares jumped more than 60% on the Reuters report before paring gains after the White House pushback, highlighting investor sensitivity to potential federal equity moves.
  • Critical Metals’ move to lift its Tanbreez ownership to 92.5% is pending Greenland government approval, and any U.S. equity participation or prospective EXIM support would still require further interagency and host‑country approvals; the effort fits a broader policy shift that has included stakes in MP Materials and Lithium Americas.