The Trump administration is exploring a potential equity stake in Critical Metals (NASDAQ:CRML), a US-listed company developing Greenland’s massive Tanbreez rare earths deposit, people familiar with the discussions told Reuters.
This isn’t the White House’s first foray in the critical minerals space, as the President has been adamant about building domestic supply chains for in demand metals and minerals.
“Hundreds of companies are approaching us trying to get the administration to invest in their critical minerals projects,” according to a senior Trump administration official.
While nothing has been confirmed yet, the report acknowledged ongoing talks about a possible investment, which three sources said could stem from a conversion of a pending US$50 million Defense Production Act grant application into an equity position.
Rare earth elements, prized for their powerful magnetic properties, are indispensable for technologies ranging from electric vehicle motors and wind turbines to missile guidance systems.
With China currently dominating the mining and processing of these materials, the US has increasingly sought to diversify its supply chain by backing projects at home and abroad.
Critical Metals, which last year acquired the Tanbreez project for US$5 million in cash and US$211 million in stock, applied for the federal grant in June.
The discussions in recent weeks have centered on turning that request into a government stake worth roughly 8 percent, though the final figure and the deal itself remains uncertain.
The company has not publicly commented on the negotiations and did not respond to multiple requests for comment.
Earlier this month, the administration finalized an arrangement to take a 5 percent stake in Lithium Americas (TSX:LAC,NYSE:LAC) through warrants issued by the US Department of Energy (DOE) as part of a US$2.23 billion loan package for the Thacker Pass lithium project in Nevada.
The Greenland proposal represents a complementary push: rather than expanding domestic mining, it would give Washington a stake in one of the world’s most strategically located and largest mineral deposits outside China.
Tanbreez, situated in southern Greenland, is believed to contain a rich mix of rare earths and other critical elements used in magnets, batteries, and high-performance alloys.
Markets responded swiftly to the news. Shares of Critical Metals surged nearly 53 percent in premarket trading Monday following Reuters’ initial report of Washington’s interest, reaching their highest levels since the company’s public listing.
Critical Metals separately announced that it had raised US$35 million from an unnamed institutional investor to advance Tanbreez’s development, while also restating its financial results for the six months ended December 2024 and 2023.
Greenland, a semi-autonomous Danish territory, has become an emerging focal point of geopolitical and resource competition in the Arctic. Its vast mineral and hydrocarbon potential, combined with its proximity to North America and Europe, makes it strategically significant for both economic and security reasons.
The Trump administration’s growing focus on Greenlandic resources also coincides with private-sector activity in the region.
Last month, New York-based Pelican Acquisition (NASDAQ: PELI) announced a merger agreement with Greenland Exploration and March GL to form the Greenland Energy Company (NASDAQ:GLND), which will pursue oil and gas exploration in East Greenland’s Jameson Land Basin.
As the Trump administration considers reallocating up to US$2 billion from the CHIPS and Science Act to fund critical minerals projects, analysts see these developments as a sign that the US is deepening its commitment to securing supply chains from the Arctic.
If the Greenland deal proceeds, it would not just revive the territory’s mining ambitions but also mark one of the most symbolic extensions yet of Trump’s long-standing interest in the Arctic frontier.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
