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Why Critical Metals Stock Rallied 26% Yesterday

Aditya Raghunath4 minute read
Reviewed by: Thomas Richmond
Last updated Jan 7, 2026

Key Stats for Critical Metals Stock

  • Price Change for Critical Metals stock: 25.6%
  • $CRML Share Price as of Jan. 6: $11.81
  • 52-Week High: $32.15
  • 52-Week Low: $1.23

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What Happened?

Critical Metals (CRML) stock exploded 26% higher on Tuesday as speculation intensified around President Donald Trump’s reported plans to acquire Greenland from Denmark.

The rally extended into after-hours trading, with an additional 11% gain, as investors bet on the strategic implications for Critical Metals’ Tanbreez rare earths project on the island.

Reports emerged that Secretary of State Marco Rubio told lawmakers that Trump intends to purchase the resource-rich Arctic territory.

Trump had previously appointed a special envoy to Greenland and stated the U.S. needs the island for national security purposes. The renewed focus on Greenland follows Trump’s actions in Venezuela, fueling speculation about similar moves to secure key mineral supplies outside China’s control.

CRML Stock Price Performance (TIKR)

Critical Metals operates the Tanbreez project, recognized as one of the largest rare earth deposits globally.

The company told Reuters last week it expects to finalize the remaining 25% of offtake agreements for Tanbreez by early 2026 and remains open to investment from Washington.

This positions CRML stock as a direct beneficiary if the U.S. gains greater influence or control over Greenland’s resources.

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What the Market Is Telling Us About CRML Stock

The massive rally in CRML stock reflects investor conviction that rare earths have become a critical national security priority for the United States.

China currently holds a monopoly on rare earth production, controlling processing and supply chains for minerals essential to consumer electronics, electric vehicles, wind turbines, and military weapons systems. Beijing has previously used this dominance as leverage during trade conflicts with the U.S.

MP Materials, another rare earths producer, also gained ground on the Greenland news. MP shares rose more than 1% in after-hours trading after finishing 2025 up 224%.

The company received a $400 million preferred equity investment from the Pentagon in July as part of efforts to build domestic rare earths processing capacity. These moves signal Washington’s determination to break China’s stranglehold on critical minerals.

However, investors should recognize significant risks with CRML stock at current levels. Danish leaders have completely rejected any notion of selling Greenland to the United States. The island is a self-governing Danish territory, and European leaders have pushed back strongly against Trump’s overtures. Any actual acquisition would face enormous diplomatic, legal, and political hurdles.

Additionally, CRML stock has already surged 270% over the past six months, raising questions about how much of this optimistic scenario is already priced in. The company is still in the development stage for Tanbreez, meaning production and revenue remain years away.

Critical Metals is a subsidiary of European Lithium Limited and operates from the British Virgin Islands, adding layers of corporate complexity.

The broader rare earths sector does offer legitimate long-term tailwinds from clean energy buildout, electric vehicle adoption, and supply chain reshoring. But the extreme volatility in CRML stock tied to speculative geopolitical developments makes it a high-risk position suitable only for aggressive investors.

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How Much Upside Does CRML Stock Have From Here?

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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