The Trump administration is in talks to take a stake in Critical Metals Corp (NASDAQ:CRML), which would give it a direct interest in Greenland’s largest rare earth deposit, the Tanbreez project.

Four people familiar with the discussions told Reuters that the administration is considering converting a $50 million Defense Production Act grant into an equity investment, marking a potential new front in Washington’s push to secure critical mineral supply chains.

“Hundreds of companies are approaching us trying to get the administration to invest in their critical minerals projects,” a senior Trump administration official said. “There is absolutely nothing close with this company at this time,” the official added, emphasizing that discussions remain preliminary.

Also Read: US Pushes Equity Stakes In Australia’s Critical Minerals Sector

Following stakes in Lithium Americas (NYSE:LAC) and MP Materials (NYSE:MP), such an investment would be the next step for the White House, as it seeks to reduce reliance on Chinese-controlled production and processing.

The Tanbreez deposit, situated in southern Greenland near the town of Narsaq, contains approximately 45 million tons of rare-earth-bearing rock. These materials are essential for various technologies, including electric vehicles, wind turbines, advanced defense systems, and semiconductor components.

President Donald Trump has expressed interest in Greenland on multiple occasions, famously floating the idea of purchasing the island in 2019 and again earlier this year. While the proposal was widely dismissed, the U.S. has continued to court Greenlandic officials, including through visits by Vice President JD Vance earlier this year.

Critical Metals purchased Tanbreez last year for $5 million in cash and $211 million in stock, following the successful encouragement of U.S. officials to the previous owner to reject a higher bid from a Chinese buyer. The mine’s development cost is estimated at $290 million, with initial production targeted for 2026.

Once operational, it could produce around 85,000 tons of rare earth concentrate annually, alongside smaller but strategically essential quantities of gallium and tantalum, both minerals that China has recently imposed export restrictions on.

The Trump administration began talks with the firm about six weeks ago, evaluating the conversion of the $50 million grant into equity. As of Friday’s close, Critical Metals had a market cap of around $787 million, which would translate to about a 6.3% stake in the company, although the final structure remains uncertain. The discussions are separate from a proposed $120 million loan package under consideration by the U.S. Export-Import Bank to fund early-stage development work at Tanbreez.

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The interest in Greenland’s resources is a global matter. Britain has also been deepening its engagement with Greenland. Politico reported that the UK government reopened free talks with the island, seeking closer cooperation on critical minerals. British companies hold roughly one-third of Greenland’s mining licenses.

Price Watch: Critical Metals stock has surged 77.69% premarket, currently standing at $14.18 per share as of 5:00 AM ET.

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This article Washington Joins London In A Race For Greenland's Minerals originally appeared on Benzinga.com

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