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yesterday

U.S. Weighs Equity Stake in Critical Metals as White House Plays Down Deal

Reports of a $50 million grant converting to equity reflect a broader push for supply‑chain ownership.

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 the administration has discussed converting a $50 million Defense Production Act grant into an equity stake in Critical Metals, which would give Washington exposure to the Tanbreez rare‑earth project in Greenland.
  • A senior administration official said there is nothing close with the company at this time, and a White House denial reported by Bloomberg tempered expectations of an imminent agreement.
  • Critical Metals confirmed a $35 million PIPE financing with an institutional investor to support development of Tanbreez, which the company describes as a major rare‑earth deposit.
  • The company recently amended its agreement to lift its ownership in Tanbreez to about 92.5%, a change that remains subject to approval by the Greenland government.
  • Shares jumped more than 60% on the Reuters report before pulling back after the White House comment, underscoring market sensitivity as the U.S. shifts toward taking stakes in firms like MP Materials, Lithium Americas, and Intel to reduce reliance on China.