Critical Metals Takes Full Control of Greenland's Tanbreez Rare Earth Project with 92.5% Stake

Why It Matters

The deal moves a strategic, heavy‑rare‑earth asset closer to U.S. control, reducing reliance on China and supporting defense and clean‑energy supply chains.

Key Takeaways

• Critical Metals now holds 92.5% of Tanbreez, 7.5% remains with European Lithium
• Shares jumped 23.6% to $11.46, valuing the company at $1.4 billion
• Tanbreez contains 45 M tonnes at 0.40% REO, 27% heavy rare earths
• Project could receive up to $120 million US Export‑Import Bank financing

Pulse Analysis

The approval of an indirect licence transfer for the Tanbreez project underscores a growing geopolitical focus on securing critical minerals outside China. Heavy rare earths such as dysprosium and terbium are essential for high‑performance magnets used in electric vehicles, wind turbines, and defense systems. By increasing its ownership to 92.5%, Critical Metals positions itself as a key supplier for U.S. manufacturers, aligning with recent policy initiatives that encourage domestic sourcing and strategic stockpiling of these scarce materials.

Tanbreez’s resource profile is compelling: 45 million tonnes grading 0.40% total rare‑earth oxides, with a notable 27% share of heavy rare earths. A preliminary economic assessment values the deposit at roughly $3 billion, and the phased development plan targets an initial 85,000 tonnes of rare‑earth oxides per year, scalable to 425,000 tonnes. Such production capacity could satisfy a significant portion of U.S. demand, especially for high‑value magnet applications, while the project's location in southern Greenland offers logistical advantages for shipping to European and North American markets.

Market reaction has been swift, with Critical Metals’ shares surging 23.6% to $11.46, pushing the company’s market cap to about $1.4 billion. The firm also stands to benefit from up to $120 million in financing from the U.S. Export‑Import Bank, a clear signal of governmental backing. Strategic partnerships—including a ten‑year offtake tied to Ucore’s processing facility and collaboration with GreenMet—further de‑risk the venture. As the feasibility study progresses, investors and policymakers alike will watch Tanbreez as a potential cornerstone of a more resilient, non‑Chinese rare‑earth supply chain.

Deal Summary

Critical Metals Corp increased its stake to 92.5% in the Tanbreez rare earth project in southern Greenland after the Greenland ministry approved an indirect transfer of the mining licence. The transaction gives Critical Metals full control of the $3 billion-valued project, while European Lithium retains a 7.5% interest.