New York, January 26, 2026, 10:46 (EST) — Regular session
- Critical Metals shares dropped roughly 9% after erasing an initial advance and swinging wildly within the first hour
- Shares of rare-earth developers rose after Washington threw its support behind a fresh financing deal for USA Rare Earth
- Traders want clarity on Critical Metals’ plans for Tanbreez, including its timeline and funding strategy in Greenland
Shares of Critical Metals Corp (CRML) tumbled 9.5% to $18.66 by 10:46 a.m. EST, after hitting an intraday peak of $22.59 and plunging to a low of $18.54. The stock kicked off at $21.81, edging past Friday’s $20.62 close, on roughly 17.7 million shares changing hands.
Washington’s push on rare earth supply chains is stirring up the market, with traders eyeing the smallest listed companies as high-beta plays. Rare earths, a set of 17 elements, are crucial for making high-strength magnets found in electric vehicles, smartphones, and military equipment.
Critical Metals, focused on developing the Tanbreez deposit in southern Greenland, has quickly turned into a barometer for that sector. With no commercial rare earth production underway, its stock remains highly sensitive to policy updates and financing rumors.
USA Rare Earth jumped about 15% after announcing the Trump administration’s backing of a $1.6 billion debt-and-equity package. This includes $277 million in proposed federal funding plus a $1.3 billion senior secured loan under the CHIPS Act to support building a Texas mine and a magnet plant in Oklahoma. The company also unveiled a $1.5 billion private investment in public equity (PIPE) priced at $21.50 per share. Washington has previously invested in MP Materials, Lithium Americas, and Trilogy Metals. CEO Barbara Humpton highlighted the key question: “What would be the cost of having access to nothing?” (Reuters)
The read-across boosted several rare-earth and critical-minerals stocks at the open, but the gains didn’t stick everywhere. In Critical Metals, what started as a rally soon flipped into a selloff.
Earlier this month, Critical Metals inked a non-binding term sheet with Saudi Arabia’s Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers for a 50-50 joint venture. The deal aims to refine 25% of output from its planned Tanbreez project in the kingdom, the company confirmed. Tariq’s CEO, Abdulmalik Tariq Al-Qahtani, highlighted the “strong opportunity” to collaborate with U.S. customers. Critical Metals pegged the Greenland mine’s start-up costs at around $290 million, eyeing first production next year. (Reuters)
Investors remain caught between term sheets and actual completed plants. Many timelines in the sector hinge on permitting, funding, and offtake contracts—processes that often stretch out over years.
Still, U.S. support for USA Rare Earth remains only a proposal, while Critical Metals’ deal with Saudi Arabia is non-binding. Any drop in rare-earth prices, a tighter funding environment, or setbacks in Greenland could quickly turn sentiment negative.
Monday’s action demonstrated how quickly these trades can reverse. The stock started the day up but slipped lower as volume picked up.
Critical Metals revealed in its latest annual filing that Greenland has pushed back deadlines related to Tanbreez’s exploitation license. This includes the need to submit financial security and a company guarantee by June 30, 2026. That deadline—and any news on project financing before then—will be a key date for CRML investors. (Sec)
