The Trump administration is weighing an equity stake in Critical Metals Corp, a New York-based company developing Greenland’s Tanbreez rare earths project. According to four people familiar with the talks, Washington could convert a proposed $50 million Defense Production Act grant into an equity stake of roughly 8%. While no agreement has been finalized, the move underscores U.S. efforts to secure critical minerals vital to electric vehicles, defense technologies, and semiconductors.
Critical Metals purchased the Tanbreez deposit last year for $5 million in cash and $211 million in stock, reportedly outbidding a higher Chinese offer thanks to U.S. government backing. The deposit holds significant quantities of rare earths, gallium, and tantalum—resources largely dominated by China. Once operational, Tanbreez is expected to produce 85,000 metric tons of concentrate annually, with full production targeted by 2026.
This potential investment follows similar U.S. stakes in Lithium Americas and MP Materials, reflecting a broader strategy to diversify supply chains away from Chinese dominance. The Trump administration has also considered reallocating $2 billion from the CHIPS Act—originally aimed at boosting domestic semiconductor manufacturing—to support critical minerals projects.
In addition to the possible equity stake, the U.S. Export-Import Bank is reviewing a $120 million loan to accelerate development of Tanbreez. That funding would cover technical work and bring the project into production. Despite the momentum, challenges remain, including Greenland’s slow-moving mining sector, environmental concerns, and the harsh Arctic conditions surrounding the site.
Greenland’s strategic importance is not new. Both Trump and Biden administrations have sought stronger ties, with senior officials visiting Nuuk to encourage investment. Trump even floated the idea of buying Greenland outright in 2019. Today, the focus has shifted to securing rare earths—critical for national security and future technologies—making the Tanbreez project a centerpiece of Washington’s mineral strategy.