Critical Metals Advances Greenland Rare Earth Project with Pilot Plant Approval

Tanbreez’ Hill deposit area. (Image courtesy of Critical Metals.)

Rare earth developer Critical Metals has approved the construction of a multi-use storage and pilot facility in Qaqortoq, Greenland, marking a significant milestone in the development of its flagship Tanbreez rare earth project.

The company said the facility will be delivered under a full turnkey contract, covering engineering, permitting, logistics, construction, and commissioning. Designed specifically for Arctic operating conditions, the pilot plant is expected to be operational by May 2026.

In parallel with the construction approval, Critical Metals confirmed the acquisition of a residential property in Qaqortoq, which will be converted into a permanent local office and operational base to support ongoing project activities.

“This turnkey contract provides a clear and structured pathway to deliver critical pilot infrastructure in a challenging Arctic environment,” said Tony Sage. “Establishing a permanent presence in Qaqortoq underscores our commitment to operating responsibly and efficiently as we advance Tanbreez toward development.”

Market reaction and strategic significance

The announcement triggered a sharp rally in Critical Metals’ share price, which rose as much as 16% to US$13.73 in New York trading—its highest level in more than two months. The company’s market capitalisation stood at approximately US$1.5 billion following the move.

The pilot facility represents a major step forward for the Tanbreez project, which is considered one of the world’s largest known rare earth deposits. The site hosts an estimated 45 million tonnes of resources within a vast kakortokite unit that remains largely underexplored.

Earlier this year, Critical Metals published a preliminary economic assessment for Tanbreez, outlining a project net present value of approximately US$3 billion, with internal rates of return exceeding 180% under certain assumptions. The development plan adopts a phased approach, targeting initial annual production of about 85,000 tonnes of rare earth oxides, with the potential to scale up to 425,000 tonnes through modular expansion.

Offtake progress and ownership position

Critical Metals has already secured offtake agreements covering roughly 75% of anticipated rare earth concentrate output from Tanbreez. The company has indicated that negotiations for the remaining volumes are expected to be finalised within the current quarter.

Separately, the company has increased its ownership stake in the Tanbreez project to 92.5%, further consolidating its position as it moves toward development and potential production.

As global demand for rare earths accelerates—driven by electric vehicles, renewable energy technologies, and advanced electronics—projects such as Tanbreez are drawing increasing strategic attention. The pilot plant development places Critical Metals in a stronger position to advance the project amid growing competition to secure non-Chinese sources of critical minerals.