Trump Administration Eyes a Stake in Critical Metals Corp for Rare Earths

NEW YORK, Oct 3 (Reuters) – Trump administration officials have held discussions about acquiring a stake in Critical Metals Corp, which could provide Washington a direct interest in Greenland‘s largest rare earths project, according to four sources familiar with the matter.

If finalized, this deal could represent a significant political twist for the Tanbreez rare earths deposit, previously sold to New York-based Critical Metals by the Biden administration at a lower price compared to a Chinese firm’s offer. Washington has made recent equity investments in companies like Lithium Americas and MP Materials to expand U.S. access to critical minerals.

The details surrounding the potential equity stake in Critical Metals have not been disclosed publicly until now. One senior Trump administration official remarked, “Hundreds of companies are approaching us trying to get the administration to invest in their critical minerals projects,” and added that there are currently no imminent agreements.

Critical Metals has not responded to requests for comment, and Greenland, a semi-autonomous territory of Denmark, has not issued any statements regarding the negotiations. Rare earth minerals are essential for high-tech industries, notably in electric vehicles and missile systems, prompting Western countries to seek reliable, domestic sources.

Critical Metals previously acquired the Tanbreez deposit for $5 million in cash and $211 million in stock and applied for a $50 million grant under the Defense Production Act aimed at bolstering national security supplies. Discussions indicate that officials are now exploring the possibility of converting this grant into an equity stake.

If approved, this conversion could provide Washington with an estimated 8% stake in Critical Metals, although the specifics may change as negotiations are ongoing. Some sources noted that officials are also considering reallocating part of the CHIPS Act funding to support projects involving critical minerals.

While the talks have encountered delays over other negotiations, the officials involved have been deemed essential, which may not affect these discussions. The negotiations also contemplate how warrants would be issued to secure this stake.

Furthermore, the proposed equity investment would be separate from financing considerations from the Export-Import Bank for the Tanbreez project.

The Tanbreez project is anticipated to require about $290 million to reach commercial levels of production, producing around 85,000 metric tons of rare earths annually once operational. Despite this potential, Greenland’s mining sector has struggled to progress due to limited interest from investors and environmental concerns.

As exploration continues, Critical Metals aims to expand resources at Tanbreez while also working toward developing a processing facility in the U.S., aligning with the government’s emphasis on domestic production.