Trump administration eyes stake in company developing Greenland rare earths mine

Mon, October 6, 2025 at 12:59 AM EDT 4 min read

By Jarrett Renshaw, Ernest Scheyder and Gram Slattery

(Reuters) -Trump administration officials have discussed taking a stake in Critical Metals Corp, four people familiar with the discussions told Reuters, which would give Washington a direct interest in the largest rare earths project in Greenland, the Arctic territory that President Donald Trump once suggested buying.

If finalized, the deal would mark the latest political twist for the Tanbreez rare earths deposit, which former President Joe Biden successfully lobbied to have sold to New York-based Critical Metals for far less than a Chinese firm was offering. Washington has recently taken stakes in Lithium Americas and MP Materials, underscoring Trump's desire for the U.S. to benefit from growing production of minerals used across the global economy.

Details of the discussions about Washington's interest in an equity stake in Critical Metals have not previously been reported. The four sources declined to be named, citing the sensitivity of the negotiations.

"Hundreds of companies are approaching us trying to get the administration to invest in their critical minerals projects," a senior Trump administration official told Reuters in response to a request for comment. "There is absolutely nothing close with this company at this time."

Critical Metals did not respond to repeated requests for comment via email and phone. Greenland is a semi-autonomous part of Denmark and the Danish Embassy in Washington did not immediately respond to a request for comment. Rare earths offer strong magnetic properties critical to high-tech industries ranging from electric vehicles to missile systems. Their importance is spurring an intense push for fresh supplies by Western countries looking to lessen their dependence on China's near total control of their extraction and processing. Critical Metals, which agreed to buy Greenland's Tanbreez deposit last year for $5 million in cash and $211 million in stock, applied in June for a $50 million grant through the Defense Production Act, a Cold War-era piece of legislation aimed at boosting production of goods for national security purposes. In the last six weeks, though, the administration has begun discussions with the company about converting the grant into an equity stake, three of the sources said. If the deal goes through, a $50 million conversion would mean a roughly 8% stake in the company, although negotiations are not final and the final size of the stake could be higher or the deal itself could collapse, the same three sources said.