Shares of Critical Metals (CRML) have been on a tear, soaring more than 120% in 2025 as investors rush to gain exposure to America’s next potential rare-earth minerals supplier. The stock exploded higher after reports surfaced that President Donald Trump’s administration was considering taking a direct equity stake in the company under the Defense Production Act, signaling growing government interest in securing domestic supplies of critical minerals.
The rally highlights how political momentum and national-security priorities can quickly ignite speculative demand in early stage resource companies. With the U.S. racing to reduce reliance on Chinese rare-earth processing and strengthen its energy-transition supply chain, Critical Metals’ ownership of Greenland’s Tanbreez deposit places it at the center of a strategic global shift.
About Critical Metals Stock
Critical Metals (CRML) is a mining development and production company focusing on strategic metals for applications in electric vehicles, renewable energy, and defense technologies. The flagship project of the company is the Tanbreez rare-earth deposit in Greenland, which is one of the world’s largest untapped heavy rare earth element deposits, as used in magnets, batteries, and advanced military applications. The company is headquartered in New York and has a market cap of $1.24 billion.
From a valuation standpoint, CRML is also hard to measure. It is still in a pre-revenue phase and records no profits, so classic valuation measures such as the price-earnings ratio and price-sales ratio remain undefined. Its price-book of 11.44x and negative book value per share (-$0.24) suggest that investors are paying for huge potential in the future, but not fundamentals in the present. That premium suggests that the market is already expecting some giant government deal or production milestone.
Rare-Earth Panic Stoked by Trump Admin Discussions
The most recent rally was ignited by a Reuters story that the Trump administration is in negotiations to acquire an equity stake in Critical Metals through the Defense Production Act (DPA). The firm had initially sought a $50 million DPA grant, but the administration is said to be mulling a swap for a direct equity investment of roughly 8%.
It would come in addition to the $120 million loan that is being considered by the U.S. Export-Import Bank in an effort to assist in funding the $290 million full commercial production cost of bringing Tanbreez online. The owner of the deposit, Rimbal Pty Ltd., had signed an agreement last year with the sale of Tanbreez to Critical Metals for $5 million in cash and $211 million in shares, thereby giving CRML de facto control of one of the largest heavy rare-earth deposits in the Western Hemisphere.
Recently, Critical Metals announced that it re-negotiated with Rimbal to grow its percent of ownership in Tanbreez from 42% to 92.5% by issuing about 14.5 million shares. The action secures strategic control of the mine prior to potential U.S. government involvement.
If it becomes final, an American stake would be a historic change in the way Washington promotes domestic access to key minerals. In recent days, Trump’s administration has also moved similarly with Lithium Americas (LAC) and MP Materials (MP) as part of a larger strategy of achieving mineral independence from China.
Yet the speculation is two-sided. These talks aren’t settled and may fizzle, and that would almost surely induce a near-term correction considering the euphoric pricing of the market. CRML’s tale is of the “Trump stock” script of energy security and national defense, but execution and funding risk stays elevated until actual government deals in ink are signed.
What Do Analysts Expect for Critical Metals Stock?
CRML still has limited analyst coverage due to its early stage development. Its market capitalization has surged from below $500 million to $1.24 billion in October, a reflection of far more high-momentum trading and political rumor rather than institutional conviction.
