The Trump administration is in discussions to take an equity stake in Critical Metals Corp. (NASDAQ: CRML), which controls Greenland’s Tanbreez Rare Earths Project, according to Reuters. The move could give Washington a direct interest in one of the world’s largest undeveloped heavy rare earth deposits.
If completed, the stake would extend U.S. strategic investment into the Arctic, reinforcing Washington’s bid to diversify critical mineral supply chains away from China. The proposed structure would reportedly fall under the Defense Production Act, which allows federal funding for supply-chain security in defense-related materials.
U.S. Eyes Strategic Entry
According to Reuters, Trump administration officials have discussed converting a proposed US$50 million grant into an equity position in CRML of roughly 8%, alongside a potential US$120 million loan via the Export-Import Bank. The talks remain preliminary but underline Washington’s intent to establish direct ownership exposure to critical minerals.
The Tanbreez deposit, located near Qaqortoq in southern Greenland, contains an estimated 4.7 billion tonnes of host rock with roughly 27% heavy rare earth oxide content and negligible uranium or thorium — factors that may assist with political viability.
Critical Metals Expands Control
CRML recently amended its acquisition terms for the Tanbreez project, allowing it to increase its ownership from 42% to 92.5% upon issuing 14.5 million shares to project founder Greg Barnes’ Rimbal Pty Ltd. The shares, priced at US$8.00, represent a 23% premium over CRML’s closing price of US$6.49 at the time of the deal (September 29, 2025). Completion is subject to Greenlandic government approval, anticipated in late October or November.
European Lithium Holds a Large Stake
European Lithium (ASX: EUR, FRA: PF8, OTC: EULIF) remains the largest shareholder in Critical Metals Corp., holding 62.5 million shares following a minor off-market sale earlier this year to a U.S. institutional investor. The transaction, representing less than one percent of its total position, provided additional working capital to support European Lithium’s broader development portfolio.
At CRML’s closing price of US$7.98 on October 4, 2025, European Lithium’s remaining holding is valued at approximately US$499 million. The position continues to underpin European Lithium’s balance sheet and gives the company substantial exposure to one of the world’s most strategically significant rare earth assets.
CRML’s recent inclusion in the S&P Global BMI Index has brought renewed institutional visibility. If the U.S. proceeds with its equity interest, CRML could become the first publicly listed company with direct U.S. government ownership in a Greenlandic rare earth project — an unprecedented alignment of geopolitical and market interests.
Read More: European Lithium Affiliate (CRML) Secures Greenland Rare Earth Offtake with Ucore
