The stock market fell last week on President Donald Trump’s first threats to annex Greenland, but specific sectors have rallied further as military action began to look unlikely. Trump said he would no longer impose his new tariffs targeting Europe. Instead, he announced a “framework” agreement, which will give the United States control over limited areas of Greenland relevant to American strategic interests.

Critical metals ( CRML ) jumped immediately. This company is involved in the Tanbreez rare earth project in Greenland. This is a project that is primarily linked to the Saudi government, but could attract the attention of the Trump administration. Greenland as a whole has significant rare earth resources and Critical Metals is one of the only companies with experience in the field.

China’s retaliatory measures that restricted rare earths in the US last year drew attention to several rare earth companies. The Trump administration then signed a landmark deal with MP Materials (MP) last year and continued to invest in other similar names to secure the rare earths. The US Department of Commerce signed a $1.6 billion deal with USA Rare Earth (USAR) this week. With all eyes on Greenland, critical metals could be next.

It’s no secret that it’s among the most popular stocks right now. CRML used to change hands below $7 earlier this month before briefly rising to nearly $21. It has cooled since then, but the stock may be gearing up for another run, especially if a deal between Critical Metals and the government is announced.

The company remains pre-revenue and estimates are few and far between for upside potential here. Rare earth prices are volatile and extracting resources from Greenland will be expensive and time-consuming. Critical Metals reported just $7.3 million in cash and cash equivalents and $171.7 million in total assets in the third quarter of 2025. However, it has a market cap of approximately $2.2 billion. So whether you should pursue it at this stage is an excellent question.

If you use past rare earth deals as your criteria, I still think it’s worth buying. The government is willing to pay well above market prices for rare earths and will cover the capital investment as long as it can secure a supply outside of China.