Critical Metals Corp, headquartered in New York, has received a loan intent letter from the Export-Import Bank of the United States (EXIM) for a financing plan of up to $120 million. The funding will be used to develop the Tanbreez rare earth mining project in Greenland.
EXIM, the official export credit agency of the United States government, aims to support companies competing with China, marking the Trump administration’s first investment in overseas mining with the goal of reducing America’s dependence on Chinese rare earth minerals.
According to a letter disclosed by Reuters on Sunday, the loan plan is designed to provide better terms than what the company could obtain through private financing, with a repayment period of up to 15 years.
The project must have a solid capital structure and “strategic investors providing adequate equity” to qualify for the loan, as stated by EXIM.
Rare earth minerals are critical raw materials for permanent magnets essential in electric vehicles, missile systems, and other high-tech industries vital for U.S. national security and supply chains. The move by the Trump administration aims to enhance control over mineral resources and reduce reliance on market dominator China.
In April this year, Beijing announced restrictions on rare earth exports amid the U.S.-China trade dispute. Although the two countries reached a truce agreement earlier this month, China’s control over the industry has heightened Western concerns, sparking a global race to find new supply sources.
The total cost of the Tanbreez project is estimated at $290 million. The $120 million loan from EXIM will be allocated for technical operations and initial construction at the mine site, with the goal of achieving initial production by 2026.
Once fully operational, the mine is expected to produce approximately 85,000 metric tons of rare earth concentrate annually, along with two other rare metals.
Earlier this year, Critical Metals engaged in supply negotiations with defense contractor Lockheed Martin. The loan proposal underscores Greenland’s strategic importance on the geopolitical stage. President Trump had previously expressed interest in purchasing the autonomous island from Denmark, a proposition that was repeatedly rejected.
During the Biden administration, the White House showed considerable interest in the Tanbreez project. Officials successfully deterred the original owners of the mine from selling to a Chinese developer, facilitating Critical Metals in obtaining mining rights instead.
Reports indicate that Biden administration officials were actively encouraging private investments in Greenland’s mining industry in November last year. Vice President JD Vance visited Greenland in March this year, continuing the previous administration’s focus on the region.
Notably, Cantor Fitzgerald, a financial services company, is the tenth largest shareholder of Critical Metals. Former CEO Howard Lutnick of Cantor Fitzgerald is currently serving in the Trump administration as the U.S. Secretary of Commerce.
CEO Tony Sage of Critical Metals stated to Reuters that he has never met or spoken with Lutnick but acknowledged that Cantor Fitzgerald’s investment is a significant advantage.
While the potential loan will drive project development, Critical Metals still faces critical challenges in processing, such as constructing a processing facility or finding a refining plant with surplus capacity.
The company aims to process rare earth minerals domestically in the United States, and the financial support from EXIM will make this goal more feasible.
Critical Metals previously applied for funding from the U.S. Department of Defense last year to build a processing facility locally, but the review process was halted before Trump took office in January.
To meet the funding requirements for the loan, the company is considering entering into supply agreements, royalty mechanisms, and exploring financing channels from other U.S. government agencies.