The U.S. government has reportedly explored the possibility of acquiring an equity interest in Critical Metals Corp (NASDAQ:CRML), the firm developing Greenland’s Tanbreez rare earth project, according to Reuters sources familiar with the matter.
Such a move would give the United States a direct foothold in one of the planet’s largest untapped rare earth deposits, a sector largely dominated by China.
Officials are said to be weighing the option of converting a $50 million Defense Production Act grant requested by Critical Metals into an equity investment. If this plan goes forward, it could result in Washington holding approximately an 8% stake in the company. However, the discussions are still in the early stages and may not ultimately lead to a transaction.
The potential investment aligns with President Trump’s wider strategy to secure domestic access to critical minerals and decrease dependence on Chinese suppliers.
Recently, the U.S. has taken positions in Lithium Americas Corp (NYSE:LAC) and MP Materials as part of efforts to diversify the supply chains of materials essential for electric vehicles, defense technologies, and advanced electronics.
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