Trump administration to invest in Greenland rare earth mining company? White House official denies.

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Last Friday, there were reports that the Trump administration was considering taking a stake in Critical Metals Corp., the company developing Greenland's largest rare earths project. On Monday, White House officials denied that the Trump administration had such considerations.

After news of the White House officials' denial came out on Monday, October 6th (U.S. Eastern Time), Critical Metals (CRML) shares, which had surged as much as 109% in early trading, quickly pared gains. At one point, the intraday gain fell to below 15%. Due to high volatility, trading was halted, but early in the afternoon session, the gain exceeded 40%. Comments noted that speculation about the Trump administration considering an equity stake, combined with Critical Metals' announcement of new institutional investors, jointly fueled Monday's dramatic surge in the company's stock price.

Other rare earth-related companies saw divergent stock price movements. Ucore Rare Metals (UURAF) maintained an intraday gain of over 10%, NioCorp Development (NB) rose over 6% intraday, Energy Fuels (UUUU) climbed over 3% intraday, while MP Materials (MP) and USA Rare Earth (USAR) briefly dipped. USAR's loss once exceeded 3%, but soon turned positive.

Trump Administration Reportedly Considers Direct Participation in Greenland’s Largest Rare Earth Project; White House Officials Clarify

According to media reports last Friday, informed sources said that Trump administration officials had discussed taking a stake in Critical Metals, which would allow the U.S. government to directly participate in Greenland's largest rare earth project.

The report stated that, in the past six weeks, the government began discussions with the company about converting a $50 million Defense Production Act grant into an equity investment. If the transaction goes through, the $50 million conversion would translate to about 8% of the company's shares, though negotiations had not yet been finalized.

Last year, Critical Metals agreed to acquire Greenland's Tanbreez deposit for $5 million in cash and $211 million in stock. This June, the company applied for a $50 million grant through the Defense Production Act.

According to Xinhua News Agency, on March 20, President Trump said he had signed an executive order aimed at enhancing domestic production capacity of critical minerals and rare earths. The report said the order allows the use of the U.S. Defense Production Act to provide funds, loans, and other investment support to enhance domestic production capacity of critical minerals.

This Monday, other media reported that a White House official clearly stated that the Trump administration is not currently considering a deal to acquire a stake in Critical Metals. The official noted that the government remains in ongoing contact with the private sector and has received hundreds of equity investment proposals, but is not actively considering an agreement with Critical Metals.

Critical Metals did not immediately respond to a request for comment.

Trump Administration Equity Investment Strategy

In recent months, the Trump administration has announced a series of investment deals with private enterprises, allowing relevant companies to exchange equity for government loans and subsidies.

When approving the acquisition of U.S. Steel by Japan's Nippon Steel in June, the U.S. government received a so-called "Golden Share," giving the government veto power over key decisions. In July, the U.S. Department of Defense announced the purchase of $400 million in preferred shares of domestic rare earth producer MP Materials Corp., which would make it the company’s largest shareholder with about a 15% stake.

In August, President Trump announced that his administration had obtained about $11 billion worth of Intel shares without spending a dime. Intel confirmed on the same day that, via funding from the CHIPS Act and investments, the U.S. government will receive a total stake of about 10% in exchange for an $11 billion total investment. In addition to the $2.2 billion CHIPS Act funding that Intel has already received, the government intends to invest another $8.9 billion in equity in Intel.

Last Tuesday, the U.S. Secretary of Energy confirmed that the U.S. government will acquire a 5% stake in Lithium Americas Corp. and hold a 5% interest in its Thacker Pass lithium project in Nevada.

White House Press Secretary Levitt said last week that efforts such as holding shares in MP Materials are "creative solutions by the U.S. president to address the national debt crisis."

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