October 6, 2025
The US government has dismissed reports suggesting it is contemplating acquiring a stake in Critical Metals, a company involved in developing one of the largest rare earth resources in Greenland. A White House official clarified on Monday that the Trump administration is not pursuing such a deal, as initially reported by Bloomberg.
Last Friday, Reuters had reported that Washington was in discussions about an equity investment in the New York-based company while finalizing a deal to acquire a 5% stake in Lithium Americas, which is developing a significant lithium project in Nevada. This report, along with Critical Metals' announcement of a new institutional investor, caused the company's shares to surge during after-hours trading and into Monday. At one point, the stock more than doubled from its Friday closing price of $8.14 to a record high of $16.88 per share. By midday, the shares were trading at $11.70, giving the company a market capitalization of $1.1 billion, as some investors took profits following the White House's statement.
According to Reuters, Critical Metals was among "hundreds of companies" in the critical minerals sector that had approached the US government for investment. A potential deal would have converted its $50 million federal grant into an approximate 8% equity stake for Washington.
Critical Metals' Tanbreez project is one of the largest rare earth deposits globally, with at least 45 million tonnes in resources, primarily within a massive kakortokite unit that remains largely underexplored.
