Critical Metals (CRML) shares opened roughly 30% higher on Tuesday after JPMorgan announced a $1.5 trillion investment plan, including as much as $10 billion earmarked for equity investment in companies focusing on critical minerals and other pressing technology.
The initiative aims at mitigating America’s national security concerns. Other than financing, JPM will advise companies on how to accelerate the country’s independence in rare earths as well.
Following today’s surge, CRML stock is trading at over 2,200% higher than its price in the final week of March.
Does the JPM Investment Warrant Buying CRML Stock?
CRML stock is rallying this morning because JPMorgan’s announcement signals deep institutional commitment to reshoring rare earth supply chains, an area where Critical Metals is strategically positioned.
By pledging not just capital, but advisory support as well to accelerate America’s independence in rare earths, JPM is elevating the company’s long-term relevance in defense and clean tech.
Investors are cheering CRML shares as they believe the Nasdaq-listed firm now stands to benefit from both direct funding and policy tailwinds.
In short, the convergence of national security and industrial policy could lead to increased demand, visibility, and strategic partnerships for the New York-headquartered Critical Metals.
Why Investors Should Still Practice Caution on CRML Shares
Another reason to consider owning Critical Metals shares is China’s recent curbs on exports of rare earth elements.
China’s restrictions tighten global supply, potentially resulting in higher prices, increased domestic demand, and greater policy support. The rising geopolitical urgency could boost prospects for firms like CRML.
Still, investors are recommended caution in buying this rare earth stock partly because it lacks Wall Street coverage, indicating limited institutional oversight, low liquidity, and minimal transparency.
Without analyst models or earnings forecasts, there’s little guidance on valuation or execution risk.
Moreover, Critical Metals’ long-term viability hinges on policy momentum and capital-intensive projects that may take years to materialize. If federal support stalls or rare earth prices normalize, the stock could quickly lose favor.
All in all, CRML shares, at least for now, trade more on narrative than fundamentals – and that’s a red flag for seasoned investors.
