Western allied nations are aggressively accelerating efforts to decouple critical mineral supply chains from China. The Government of Greenland officially approved the transfer of a 50.5% interest in the Tanbreez rare earth project to Nasdaq-listed Critical Metals Corp., verifying the official approval taking the company to 92.5% ownership. European Lithium retains the remaining 7.5% stake.
The market reacted violently to the April 17 announcement. Critical Metals shares jumped 23.6% in pre-market trading to $11.46. The stock eventually climbed as high as $12.56. That 35% surge pushed the company’s market capitalization to roughly $1.4 billion. The Tanbreez asset is located at Killavaat Alannguat in southern Greenland. It is widely recognized as one of the largest undeveloped heavy rare earth deposits outside Chinese control.
The Production and Financial Strategy
The Tanbreez resource base contains 45 million tonnes grading 0.40% total rare earth oxides. It features a highly lucrative 27% concentration in heavy rare earths, including Dysprosium, Terbium, and Yttrium. The project will deploy a phased growth model. The initial target is 85,000 tonnes of rare earth oxides annually. Modular expansion plans can scale that output up to 425,000 tonnes.
Recent technical milestones de-risked the site. A March metallurgical breakthrough confirmed recovery rates above 85% alongside a 2.96% TREO concentrate grade. This technical viability triggered massive capital inflows into the business.
Critical Metals secured a $120 million letter of intent from the U.S. Export-Import Bank. The company also finalized a $1.5 billion joint venture term sheet with Saudi conglomerate TQB. That funding is earmarked to construct a dedicated processing facility.
Why the Tanbreez Consolidation Alters the Western Minerals Supply Chain
China currently controls roughly 95% of the global rare earth market. This near-total monopoly forces Western tech and defense manufacturers into vulnerable geopolitical dependencies. The strategic importance of the Greenland deposit is immense. During the Trump administration, highly publicized discussions regarding the purchase of Greenland were fundamentally motivated by the desire to secure these exact heavy rare earth assets.
The Greenland government’s official blessing removes a massive structural regulatory overhang. It cements the Tanbreez site as the premier non-Chinese cornerstone supplier of heavy rare earth elements. Parent stakeholder European Lithium immediately initiated a 12.6 million AUD share buyback. The firm explicitly cited the market’s undervaluation of its Critical Metals stake following the successful metallurgical tests and ownership expansion.