Washington Eyes Equity in Greenland Rare Earths to Break China’s Grip

The United States is weighing a direct stake in Critical Metals Corp, owner of the Tanbreez rare-earths project in southern Greenland.

One option under discussion would convert a $50 million Defense Production Act grant request into equity—roughly an 8 percent holding—while a separate U.S. Export-Import Bank letter of interest contemplates up to $120 million in debt to help build the mine.

The price tag to reach commercial output is estimated near $290 million, and talks are ongoing. Tanbreez sits at Killavaat Alannguat and is rich in heavy rare earths used to make the high-performance magnets inside electric vehicles, wind turbines, and advanced defense systems.

The deposit also contains gallium and tantalum. Critical Metals agreed last year to buy Tanbreez for $5 million in cash plus 211 million shares and has moved to lift its ownership to 92.5 percent by issuing 14.5 million new shares at $8 apiece, pending approval from Greenlandic authorities.

Behind the story: this is about de-risking a chokepoint. China dominates rare-earth mining and, crucially, processing. Washington has begun moving from grants and loans to taking small ownership positions in strategic projects—part of a wider effort to build an allied supply chain for magnets and battery materials.

A U.S. foothold in Greenland adds a Nordic-Arctic dimension to that strategy and deepens ties with Denmark and Greenland, where oversight over permitting and environmental safeguards remains rigorous. Approvals are not automatic, and timelines can slip in the Arctic.

U.S. Eyes Greenland Rare Earths to Diversify Supply Chain

Why it matters beyond the region: securing rare-earth supply lowers the risk of component shortages that can stall EV production, slow wind build-outs, and raise costs for manufacturers worldwide.

For export-oriented economies such as Brazil, steadier access to magnet materials can stabilize investment plans and reduce price shocks rippling through auto, energy, and aerospace suppliers.

For Greenland, a carefully managed project could bring jobs, infrastructure, and revenue—provided environmental standards are met. The bottom line: Washington’s potential stake in Tanbreez is a small financial move with outsized strategic weight.

If the financing and permits come together, this Arctic project could become one of the first tangible alternatives to a supply chain that, for years, has run largely through China.

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