US Government Considers Strategic Stake in Greenland Rare Earths Company

The Trump administration is in talks to acquire an equity stake in Critical Metals, a company involved in rare earth and lithium mining, notably through its majority ownership of the Tanbreez mine in Greenland, one of the largest rare earth deposits globally. This potential $50 million investment, possibly converted from a Defense Production Act grant, would give the U.S. government about an 8% stake in the company, reinforcing efforts to reduce dependence on China for critical minerals vital to defense and technology sectors. In addition to the equity discussions, a $120 million loan from the U.S. Export-Import Bank is also being considered to support mine development. Despite the surge in Critical Metals' stock price by over 75%, the company faces financial challenges including negative earnings, lack of revenue, low liquidity, and poor profitability metrics. The move aligns with President Trump's broader strategy to boost domestic production of critical minerals and secure strategic resources from Greenland. Negotiations remain uncertain, and company officials have refrained from comment while a Trump administration spokesperson denied immediate deal confirmation.