Shares in Critical Metals Corp (NASDAQ: CRML) surged as much as 80% in after-hours trading following a Reuters report that the U.S. government is exploring an investment in the company, which holds a dominant stake in one of the world’s largest rare earth deposits—the Tanbreez project in southern Greenland.
The stock had closed Friday’s session at $7.98, giving the firm a market capitalization of $786.9 million.
According to the Reuters report published Friday, the potential investment forms part of the Trump administration’s broader push to secure supplies of critical minerals essential for clean energy and defense technologies.The news comes just one day after Critical Metals increased its interest in the Tanbreez project from 42% to 92.5%, gaining near-total control of the deposit.
This would mark the U.S. government’s third strategic minerals deal in recent months:
A Trump administration official told Reuters that Critical Metals is among “hundreds of companies” with critical minerals projects that have sought U.S. government investment.
Another source indicated that talks have been underway for about six weeks regarding the conversion of a $50 million government grant—applied for by the company in June—into equity. If approved, the U.S. would secure roughly an 8% stake in Critical Metals and its Tanbreez project.The equity discussions are separate from a $120 million loan package currently being arranged by the U.S. Export-Import Bank, also announced in June.
Company estimates indicate that Tanbreez contains at least 45 million tonnes of total resources, hosted within a massive and largely underexplored kakortokite unit. Approximately one-third of these resources are classified as heavy rare earths—crucial for high-tech and defense applications and significantly scarcer than light rare earths.
Notably, the identified rare earth mineralization spans only about 1% of a 4.7-billion-tonne host rock, leaving substantial exploration upside.A recently released preliminary economic assessment estimates the project’s net present value at approximately $3 billion (pre-tax, at discount rates between 12.5% and 15%), with an internal rate of return of 180%. The company plans initial production of 85,000 tonnes of rare earth oxides per year by 2026, scaling up to 425,000 tonnes after modular expansion.
Greenland’s vast mineral wealth has drawn sustained U.S. strategic interest. The autonomous Danish territory hosts the northernmost U.S. military outpost and contains strategically vital resources. Reuters reported that the Biden administration previously lobbied the former owner of Tanbreez to reject an offer from a Chinese developer and instead sell to Critical Metals at a lower price.
President Donald Trump has openly expressed interest in “owning” Greenland, while Vice President JD Vance traveled there earlier this year to advance the administration’s outreach.
Despite growing attention, Greenland’s mining sector remains hampered by limited investment, regulatory complexity, and environmental opposition. Only two small mines are currently in operation. Even with financial backing, Critical Metals must still construct processing infrastructure. Company representatives stated that their ultimate goal is to refine the material inside the United States.
