The stock market moved lower last week due to President Donald Trump’s earlier threats to annex Greenland, but specific sectors have rebounded even higher once military action started looking unlikely. Trump said he would no longer impose his new tariffs aimed at Europe. He instead announced a “framework” deal, which will give the U.S. control over limited areas of Greenland relevant to American strategic interests.
Critical Metals (CRML) jumped immediately. This company is involved in the Tanbreez rare earths project in Greenland. This is a project that is linked mostly to the Saudi government but could garner attention from the Trump administration. Greenland as a whole has significant rare earth resources, and Critical Metals is one of the only companies with on-the-ground experience there.
China’s retaliatory measures that restricted rare earths to the U.S. last year drew attention to several rare earth companies. The Trump administration then signed a landmark deal with MP Materials (MP) last year and continued investing in several other similar names to secure rare earths. The U.S. Commerce Department signed a $1.6 billion deal with USA Rare Earth (USAR) this week. With all eyes being on Greenland, Critical Metals could be next.
It’s not a secret that this is among the hottest stocks now. CRML used to change hands below $7 earlier this month before briefly surging to nearly $21. It has cooled off since, but the stock may be preparing for another leg up, especially if a deal between Critical Metals and the government is announced.
The company remains pre-revenue, and estimates are few and far between regarding how big the potential is here. Rare earth prices are volatile, and extracting resources from Greenland will be costly and lengthy. Critical Metals reported just $7.3 million in cash and cash equivalents and $171.7 million in total assets in Q3 2025. Yet, it has a market capitalization of ~$2.2 billion. Whether you should chase it at this stage is thus an excellent question.
If you use previous rare earth deals as a yardstick, I still think it’s worth buying. The government is willing to pay well above market prices for rare earths and will cover capex as long as it can secure a supply outside of China.
