The Trump administration is investigating a potential share interest in critical metals (Nasdaq: CRML), an American listed company that develops Greenland’s huge Tanbreez Rare Earths deposit, people who are familiar with the discussions Reuters told.
This is not the first trip of the White House in the critical mineral space, because the president is determined to build domestic supply chains for demand metals and minerals.
“Hundreds of companies are approaching us who are trying to make the administration invest in their critical mineral projects,” said a senior Trump Administration civil servant.
Although nothing has been confirmed yet, the reporting discussions about a possible investment recognized, which, according to three sources, could result from a conversion of an inhaling US $ 50 million Defense Production Act Grant request in a share position.
Rare earth elements, appreciated for their powerful magnetic properties, are indispensable for technologies, ranging from electric vehicle engines and wind turbines to rocket conducting systems.
With China, which is currently dominating the mining and processing of these materials, the US has increasingly tried to diversify its supply chain by supporting projects at home and abroad.
Critical Metals, which last year took over the Tanbreez project for US $ 5 million in cash and US $ 211 million in shares, asked the federal subsidy in June.
The discussions in recent weeks have focused on converting that request into a government interest worth around 8 percent, although the final figure and the deal itself remain uncertain.
The company has not publicly commented on the negotiations and has not responded to several requests for comments.
Earlier this month, the administration completed a scheme to take a 5 percent interest in Lithium Americas (TSX: LAC, NYSE: LAC) Via Warrants published by the US Department of Energy (DOEN) as part of a loan package of US $ 2.23 billion for the Thakker Pass Lithium Project in Nevada.
Greenland’s proposal represents a complementary push: instead of expanding domestic mining, the Washington would give an interest in one of the world’s most strategically located and largest mineral deposits outside of China.
Tanbreez, located in the south of Greenland, is supposed to contain a rich mix of rare earths and other critical elements used in magnets, batteries and powerful alloys.
Markets responded quickly to the news. Shares of critical metal rose nearly 53 percent on Monday in premarket trade after Reuters‘ First report of the importance of Washington, who reach their highest level since the public list of the company.
Critical metal It was announced that the US $ 35 million had collected from an unnamed institutional investor to promote the development of Tanbreez, while he had also restored his financial results for the six months ending on December 2024 and 2023.
Greenland, a semi-autonomous Danish territory, has become an emerging central point of geopolitical and resource competition in the Arctic. The enormous potential for mineral and hydrocarbon, combined with its proximity to North America and Europe, makes it strategically important to both economic and safety reasons.
The growing focus of the Trump administration on Greenlandse means also coincides with the activity of the private sector in the region.
Last month, the New York -based Pelican Acquisition (Nasdaq: Peli) announced one merger agreement With Greenland exploration and March GL to form the Greenland Energy Company (Nasdaq: GLND), which will pursue oil and gas exploration in the Jameson Land Basin in Eastern Groenland.
Since the Trump administration is considering a refurbishment of US $ 2 billion from the Chips and Science Act to finance critical mineral projects, analysts see these developments as a sign that the US dedicating to protect supply chains from the North Pole area.
If the Greenland deal continues, this would not only breathe new life into the mining ambitions of the territory, but also mark one of the most symbolic extensions of Trump’s long -term interest in the Arctic border.
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Publication of securities: I, Giann Liguid, has no direct investment interest in a company mentioned in this article.
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