U.S. $1.6 Billion Bet on USA Rare Earth Roils Rare-Earth Stocks as CRML Slides
Critical Metals highlighted a Saudi processing plan, with its Greenland offtake pipeline still non-binding.
Overview
- The Trump administration confirmed a $1.6 billion investment in USA Rare Earth intended to bolster domestic supply chains and lessen reliance on China.
- Upon closing, the deal would grant the U.S. government 16.1 million common shares and 17.6 million warrants in USA Rare Earth.
- Critical Metals closed down about 11.25% at $18.30 after an intraday jump to $21.86 as investors repriced the sector.
- MP Materials also declined following the announcement of U.S. backing for a competitor.
- Critical Metals disclosed an MoU with TQB to pursue joint ventures for processing and refining in Saudi Arabia using ore from its 42%‑owned Tanbreez project in Greenland, and it noted four offtake term sheets remain non-binding with no assurance of becoming definitive.