Rare earth developer Critical Metals’ (Nasdaq: CRML) stock surged on Wednesday as it approved the construction of a multi-use storage and pilot facility in Qaqortoq, Greenland, to support its Tanbreez project.
In a statement, the company said the works will be executed under a full turnkey contract that covers everything from engineering, permitting and logistics to its construction and commissioning. The facility will be engineered for Arctic climate conditions and be ready for use no later than May 2026, it said.Alongside the construction approval, Critical Metals said it also completed the purchase of a residential property in the area, which will be converted into a local office and operational base.
“This turnkey contract provides us with a clear, structured pathway to deliver critical pilot plant infrastructure in a challenging Arctic environment,” Critical Metals CEO Tony Sage said in a news release. “Establishing a permanent office in Qaqortoq further demonstrates our commitment to operating locally, responsibly, and efficiently as we advance Tanbreez toward development.”
Following the announcement, Critical Metals soared as much as 16% to $13.73 in New York, its highest in over two months. Intensified threats by the US to take over Greenland also lifted the stock in recent days. As of morning trading, its market capitalization stood at around $1.5 billion.
Large rare earth project
Critical Metals views the new facility as a “major step forward” for its flagship Tanbreez project. The site is host to one of the biggest rare earth deposits on Earth, containing at least 45 million tonnes in resources within a massive kakortokite unit that has largely been underexplored to date.
Earlier this year, the company released a preliminary economic assessment for the project based on the estimated resource, showing a net present value (NPV) of approximately $3 billion (approximately $2.8 billion to $3.6 billion at discount rates of 15% and 12.5%, respectively, before tax), with an internal rate of return (IRR) of 180%.
The report outlines a phased growth strategy for the Tanbreez project, with initial production of around 85,000 tonnes of rare earth oxides per annum, beginning as early as next year, then scaled to 425,000 tonnes after modular expansion.
To date, Critical Metals has signed multiple offtake agreements for three-quarters of the rare earth concentrates that would be produced from the Tanbreez project. Recently, it told Reuters that the company expects to secure offtakes for the remaining output this quarter.