NEW YORK, April 27, 2026, 16:03 (EDT)
Critical Metals Corp. has struck a deal to acquire European Lithium Ltd. for roughly $835 million, looking to secure complete control over the Tanbreez rare earth project in Greenland. Tanbreez ranks among the world’s largest rare earth deposits; European Lithium currently holds the last 7.5% that Critical Metals doesn’t yet own.
Timing is crucial here. On Friday, the United States and the European Union ramped up their work together on critical minerals—those essential raw materials flagged as key to economic security and vulnerable to supply shocks—as Western officials look for ways to reduce China’s dominance over metals vital for advanced manufacturing and defense.
Rare earths—17 metals critical for high-strength magnets, EVs, wind turbines, medical devices, and defense hardware—remain dominated by China, which produced 91% of the world’s refined magnet materials in 2024, according to the International Energy Agency. That grip has pushed rare earth finance and processing into the geopolitical spotlight, expanding the debate beyond simple mining.
European Lithium shareholders are set to get 0.035 Critical Metals shares for every share they hold under the terms. Critical Metals will also wipe out 45,536,338 of its own shares currently held by European Lithium—roughly 34% of the total float. On top of that, the transaction brings over European Lithium’s cash pile, about AUD$306 million (or $219 million), and folds it into Critical Metals’ existing $124 million cash reserve.
Critical Metals jumped roughly $2.34 to $13.85 late on Nasdaq, with close to 40 million shares changing hands. Earlier, the stock hit $14.04. Shares of USA Rare Earth and Energy Fuels—both tied to rare earths—also gained, but Critical Metals outpaced both with a sharper rally.
Earlier this month, Greenland gave Critical Metals the green light to boost its ownership of Tanbreez to 92.5%. HREEs—or heavy rare earth elements—are crucial for making high-performance magnets that function under demanding heat and pressure. Critical Metals says Tanbreez holds all eight of the key HREEs essential for defense, clean energy, and advanced tech.
Critical Metals chairman Tony Sage called the 92.5% stake approval a game-changer for the project, saying it eliminated “the most significant structural overhang.” “Tanbreez is no longer a future project — it is a project in development,” he said. GlobeNewswire
Critical Metals isn’t the only player chasing a rare earths supply chain outside China. Just last week, USA Rare Earth agreed to acquire Brazil’s Serra Verde in a $2.8 billion deal. MP Materials is pressing ahead with its U.S. Defense Department-funded project to boost rare earth magnet output. In March, Energy Fuels reported it had produced pilot-scale terbium oxide at its Utah facility.
Financing continues to be the stumbling block for much of the sector. Bernd Schaefer, chief executive at EU-backed EIT RawMaterials, told Reuters last week Europe hasn’t built deep or transparent spot markets for critical minerals yet. He called the lack of transparency “an absolute deal breaker for many investments.” Reuters
The Critical Metals deal remains unfinished. A letter of intent is on the table, but it still requires a binding agreement, approval from European Lithium shareholders, court and regulatory sign-offs, plus due diligence. European Lithium also needs to show at least AUD$330 million in net cash and liquid assets. On top of that, the companies’ leadership overlaps: Sage is executive chairman at European Lithium, and Dietrich Wanke manages European Lithium while heading up Critical Metals’ European operations.
Should the deal go through, Critical Metals stands to gain a cleaner stake in Tanbreez, cutting a significant cross-holding from the shareholder list. But after that, things get trickier—moving this key Arctic asset from a strategic deposit to a funded mine remains the real hurdle.
