Did somebody say Greenland? European Lithium Ltd (ASX:EUR, OTCQB:EULIF)’s wholly owned US subsidiary Critical Metals Corp. (Nasdaq: CRML) could have been accused of being prescient when it took a stake in Greenland’s Tanbreez Project, one of the world’s largest known deposits of rare earth elements.
The unique European-controlled terrain made headlines recently because of the US president-elect’s recent statements about bringing it under American control.
Trump no doubt covets the island for its abundant natural resources, which are sufficient to challenge China's supply chain dominance in the rare earths market and other resource markets.
Situated in southern Greenland, CRML’s Tanbreez boasts an estimated 4.7 billion tonnes of resource, containing 28.2 million tonnes of rare earth oxides, including a notable concentration of heavy rare earth elements (HREEs).
Prescient decision
CRML says its investment in Tanbreez was a long-standing, informed and strategic decision to move into a geopolitical space that will be essential for Western governments to occupy in the near future.
The company believes the need for these critical minerals will endure well beyond the short commodities cycles of recent years.
“I like to think we are after the ‘future metals,’ the ones that are going to power our global economy and help make our world a cleaner and greener place,” wrote CRML chair Tony Sage in a recent op ed.
“Western governments, led by the example of the US, must prepare for the future by safely and securely mining in the present.
“Greenland is certainly a unique, strategic and important location, but Mr. Trump doesn’t need to buy the whole country necessarily. The answer to securing America’s clean energy and safe future may just lie within one asset in Greenland.”
Chair Tony Sage on the day of CRML's listing on the Nasdaq
The fact that the company discovered gallium at Tanbreez just days ahead of a Chinese ban on gallium, germanium and antimony is only one of the reasons the project will now be vital to supply chains.
Supply chain for defence industries
Rare earths make up more than 25% of the Tanbreez deposit, which gives it a big advantage in providing the minerals most critical for national defence.
Heavy rare earths such as dysprosium, terbium and gadolinium are indispensable for advanced military hardware, including F-35 fighter jets, Aegis destroyers, and submarines.
A single Aegis destroyer requires more than 5,200 pounds of rare earths, while an F-35 fighter jet incorporates over 500 pounds.
Such quantities demonstrate how important it is to unlock alternative supply sources like Tanbreez to meet escalating defence needs.
China’s control of more than 90% of global rare earth production has given it a decisive advantage in critical industries.
The aforementioned export restrictions by Beijing on gallium and germanium, vital to industrial and defence manufacturing, only served to highlight the vulnerability of global supply chains.
Such decisions are bringing projects like Tanbreez into focus as central to supply diversification for rare earths, reducing dependence on a single and potentially capricious producer.
Favourable jurisdiction
The Tanbreez deposit benefits from its location, with year-round deepwater shipping access via Greenland’s southern fjords and proximity to key US and European markets.
The region's relatively mild weather and strategic positioning make it a reliable and secure source for these critical materials, even in times of geopolitical conflict.
The project's scale and defensible geography have drawn interest from security agencies keen to bolster supply chain resilience.
Moreover, the mine’s low waste ratio and minimal need for chemicals in processing enhance its feasibility and environmental profile.
In addition to rare earths, Critical Metals Corp. is advancing the Wolfsberg Lithium Project in Austria, a key asset for Europe’s electric vehicle market.
With a resource of 12.88 million tonnes at a grade of 1% lithium oxide (Li2O), Wolfsberg is poised to support the continent's lithium-ion battery production, a cornerstone of the green energy transition.
The company is building a portfolio designed to address the increasing demand and competition for the critical minerals essential to clean energy, technology and national defence industries – Tanbreez is poised to play a transformative role in this mission.