In a dramatic turn of events that underscores the growing geopolitical importance of rare earth elements, shares of Critical Metals (NASDAQ: CRML) skyrocketed nearly 77% to $14.21 in premarket trading following a Reuters exclusive report. The article revealed that officials in the Trump administration have been in discussions about acquiring an equity stake in the company, which is developing a major rare earths mine in Greenland.
This potential U.S. government involvement highlights Washington’s intensifying efforts to secure supply chains for critical minerals amid escalating global demand driven by electric vehicles, renewable energy technologies, and defense applications. The surge reflects investor optimism about government-backed projects in the critical minerals sector, especially as the U.S. seeks to reduce dependence on China, which dominates rare earth production. Critical Metals, which recently increased its stake in the Tanbreez project in Greenland to 92.5%, stands to benefit from this interest, as the mine is one of the world’s largest undeveloped rare earth deposits.
While details of the stake remain undisclosed, the report suggests it could involve direct investment to bolster U.S. access to these strategic resources.
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President Trump’s Executive Order on Critical Minerals: A Policy Pivot
This development aligns with broader policy initiatives under President Trump, who has prioritized domestic mineral production through a series of executive actions. Building on his 2017 Executive Order 13817, which first identified 35 critical minerals essential to U.S. economic and national security, Trump issued a new order in March 2025 titled “Immediate Measures to Increase American Mineral Production.”
This EO declares mineral production a national security imperative, aiming to slash regulatory hurdles, expedite permitting, and mobilize federal resources to ramp up output.
Key elements of the 2025 order include:
Expedited Permitting and Project Prioritization: Agencies must submit lists of pending mineral projects within 10 days for fast-tracking on the Federal Permitting Dashboard. This addresses longstanding delays, where U.S. mine development timelines rank among the world’s longest.
Land Access and Leasing: Federal lands with known deposits are to be identified and prioritized for leasing to private entities, with extended-use agreements facilitated by the Departments of Defense, Interior, Agriculture, and Energy. This could unlock vast offshore and onshore resources, including critical minerals like rare earths and uranium.
Investment and Financing Boosts: Invoking the Defense Production Act (DPA), the order waives certain requirements and delegates authority to the U.S. International Development Finance Corporation (DFC) for direct loans and guarantees supporting domestic production. It also directs the Export-Import Bank (EXIM) to secure offtake agreements for foreign-sourced minerals to feed U.S. processing facilities.
Expanded Scope: The definition of “minerals” now includes not just critical ones but also copper, potash, gold, and uranium, enabling broader support for projects that yield strategic by-products like antimony, crucial for defense amid China’s export restrictions.
Subsequent actions, such as the April 2025 EO on offshore minerals and a Section 232 investigation into imports, further emphasize reducing foreign reliance and enhancing economic resilience.
These policies have already led to the addition of 10 more critical mineral projects to the permitting dashboard, signaling accelerated development.
What Investors Should Look for in the Critical Minerals Space Amid Rising Demand
As demand for critical minerals surges—driven by the energy transition, AI data centers, and electrification—global markets are projected to require massive investments to meet supply needs.
Battery metals like lithium, cobalt, nickel, graphite, and manganese could see combined demand triple by 2030, while rare earths remain vital for magnets in EVs and wind turbines.
However, oversupply in some segments, geopolitical tensions, and environmental concerns create volatility, making savvy investment crucial.
Here’s a guide for investors navigating this space:
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Factor
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What to Look For
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Why It Matters
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Government Support and Policy Alignment
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Companies with projects eligible for federal incentives, like DPA loans, DFC funding, or EXIM-backed offtake deals. Prioritize those in U.S.-friendly jurisdictions (e.g., Australia, Greenland, Africa) or domestic sites.
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Policies like Trump’s EO reduce risks by expediting approvals and providing capital, countering China’s dominance and export curbs.
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Supply Chain Resilience
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Firms with diversified operations, secure feedstock sources, and vertical integration (mining to processing). Watch for tungsten, aluminum, and bauxite plays amid tightening supplies.
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Concentrated processing (e.g., in China) exposes vulnerabilities; resilient chains ensure stability as demand for AI and defense grows.
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Technological and Environmental Edge
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Investments in innovative extraction methods that minimize harm, such as efficient recycling or low-impact mining. Assess ESG compliance.
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Rising regulations and public scrutiny demand sustainable practices; tech advancements can lower costs and meet surging needs without environmental backlash.
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Market Dynamics and Volatility
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High-growth minerals with demand-supply imbalances (e.g., copper for grids, rare earths for magnets). Monitor price floors, geopolitical risks, and junior miners with strong balance sheets.
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Volatility offers entry points, but focus on fundamentals like resource quality and management to weather oversupply phases.
discoveryalert.com.au
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Geopolitical Opportunities
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Exposure to U.S.-Africa partnerships or allied nations for minerals like cobalt and graphite.
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Africa’s untapped reserves present high-reward plays with U.S. support mitigating risks.
brookings.edu
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In summary, the Critical Metals surge is a bellwether for a sector poised for growth under supportive U.S. policies. Investors should balance risks with opportunities in resilient, innovative companies, keeping an eye on evolving regulations and global tensions. As the “next gold rush” unfolds, strategic picks could yield significant returns in this vital arena.
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