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1h ago

U.S. Weighs $50 Million Equity Stake in Critical Metals for Greenland Rare Earths Access

Officials say the talks are preliminary with no agreement close.

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

  • Reuters reported that the administration is discussing converting a $50 million Defense Production Act grant into equity in Critical Metals, a move that would give the U.S. a direct interest in the Tanbreez rare earths project in southern Greenland.
  • A senior administration official told Reuters there is absolutely nothing close at this time, stressing that the discussions remain at an early stage.
  • Benzinga reported Critical Metals shares jumped about 78% premarket, with a market value near $787 million implying roughly a 6% stake from a $50 million investment.
  • The equity talks are separate from a proposed $120 million U.S. Export-Import Bank loan under consideration for early-stage development at Tanbreez.
  • The potential deal fits a broader shift to strategic equity positions to reduce reliance on China, following stakes in Lithium Americas, MP Materials and Intel reported by Reuters.