The United States government is actively pursuing a strategic investment in Critical Metals Corporation, signaling a concerted effort to enhance its access to and control over vital mineral resources. This development aligns with broader national interests to secure supply chains for materials critical to advanced technologies and defense. The proposed deal, centered on the Tanbreez project in southern Greenland, is seen as a pivotal step in this direction.
US Government Seeks Direct Interest in Greenland's Tanbreez Rare Earth Project Amidst Global Mineral Race
In a significant development reported on Monday, October 6, 2025, the United States government is reportedly engaging in discussions to acquire an equity stake in Critical Metals Corporation. This strategic initiative is driven by the US's increasing focus on securing a stable supply of critical minerals, essential for various high-tech industries and national security. The core of this potential acquisition lies in the Tanbreez project, a substantial rare earth deposit located in southern Greenland, near the town of Qaqortoq.
This move follows Critical Metals' recent announcement of an amended agreement with Rimbal, which would see its ownership in the Tanbreez project increase significantly from 42% to 92.5%. Under the revised terms, Critical Metals is set to issue approximately 14.5 million ordinary shares to Rimbal at a valuation of $8 per share upon the transaction's closure. This revised agreement supersedes an earlier arrangement that did not specify a fixed number of shares but rather a value of $116 million for the increased ownership. The finalization of this agreement is currently contingent upon regulatory approval from the Greenlandic government.
Simultaneously, Critical Metals has secured $35 million through a private investment in public equity (PIPE) transaction with an institutional investor. These funds are earmarked for advancing the development of the Tanbreez project, which boasts an estimated 4.7-billion-tonne rare earth deposit. European Lithium is expected to maintain its 7.5% minority interest in the venture.
The US government's interest in this project underscores a broader trend of nations seeking to control crucial mineral assets globally. The negotiations are reportedly continuing without disruption, even amidst a US government shutdown, as key personnel involved are designated as essential workers. Tony Sage, CEO and Executive Chairman of Critical Metals, highlighted the institutional financing as a strong validation of the Tanbreez project's potential and the escalating demand for heavy rare earths in Western markets. He expressed enthusiasm for collaborating with the new institutional investor to progress the Tanbreez project towards commercial production, positioning it as a transformative asset in the rare earth sector.
This evolving narrative highlights the critical importance of mineral resources in geopolitical and economic strategies. The US government's proactive engagement in projects like Tanbreez reflects a growing understanding that securing these vital materials is paramount for technological innovation, economic stability, and national defense in the 21st century. Such partnerships could set a precedent for future international collaborations in resource development, emphasizing the need for robust supply chains and strategic control over key commodities.