Critical Metals Jumps 10% on Saudi JV Term Sheet to Process 25% of Greenland Output
Critical Metals shares jumped 10% after signing a non-binding term sheet with Saudi Arabia’s Tariq Al-Qahtani & Brothers to refine a quarter of its Tanbreez Greenland rare-earth output. A January 22 webcast on financing, permitting and offtake is planned, while insider filings disclosed restricted stock sales that could dilute equity.
1. Premarket Rally Driven by Greenland Tensions
Critical Metals Corp shares jumped nearly 10% in premarket trading on January 20, 2026, as escalating U.S. pressure on Greenland refocused investor attention on rare earth supply chains. The move follows President Trump’s announcement of proposed 10% tariffs on eight European nations starting February 1, rising to 25% by June 1 unless a U.S. agreement to acquire Greenland is secured. The company’s Tanbreez project in southern Greenland has emerged as a potential linchpin for Western access to critical minerals used in electric motors and defense applications.
2. Strategic Joint Venture with Saudi Partner
Last week, Critical Metals signed a non-binding term sheet with Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers to form a 50/50 joint venture. Under the proposed arrangement, 25% of Tanbreez’s projected rare earth output would be refined in Saudi Arabia before shipment to North America for further processing. Management forecasts that this partnership could unlock mid-stream value and mitigate downstream bottlenecks in the U.S., though final documentation remains subject to due diligence and regulatory approvals.
3. Webcast Scheduled to Clarify Financing and Permitting
Investors are eyeing a webcast on January 22, 2026 at 8:00 a.m. ET, during which Critical Metals’ management will provide updates on project financing, permitting milestones, and the sequencing of development activities. Market participants expect clarity on capital requirements for Tanbreez’s pilot plant, timelines for environmental impact assessments, and detailed plans for offtake negotiations with potential customers in Europe and Asia.
4. Remaining Risks and Shareholder Dynamics
Despite strong momentum, key risks persist. The Saudi joint venture remains non-binding, and any delay in securing long-term financing could push back production start dates or trigger shareholder dilution. A recent Form 144 filing indicates insiders plan restricted share sales, raising questions about near-term supply pressure. With a market capitalization above $2 billion and a year-to-date gain of more than 150%, investors will be watching trading volumes and liquidity during extended-hours sessions for signs of sustainable support.