Greenland Security Pact Highlights Rare Earth Permitting Bottlenecks

On September 21, 2026, Critical Metals (CRML) saw its share price jump by as much as 38% after news of a Greenland security pact. This development brought the Tanbreez rare earth permit into sharp focus. The market reaction, which also included a 6% climb for USA Rare Earth (USAR) and a 4% rise for MP Materials (MP), points to the continued strategic importance of rare earth elements. Global demand for these minerals, crucial for everything from electric vehicle motors to wind turbines, is intensifying. Securing new, non-Chinese supply sources remains a critical bottleneck. The Greenland pact specifically highlights the challenge of bringing new rare earth projects online. It is not enough to find a deposit. Extracting, processing, and refining these elements into usable forms presents significant technical and regulatory hurdles. The market is reacting to the prospect of a major new source, but the path from discovery to production is long and fraught with complexities.

The Mechanism of Rare Earth Supply

Rare earth elements, or REEs, are a group of 17 chemically similar metallic elements. They are not actually rare in the Earth's crust, but they are rarely found in concentrations high enough to be economically viable. More importantly, they are almost never found in isolation. They occur together in complex mineral assemblages. The real challenge is separating these elements from each other and from the host rock. The primary method for separation is solvent extraction. This involves dissolving the crushed ore in acid, then repeatedly washing the solution with organic solvents. Each wash selectively extracts certain REEs based on their chemical properties. This process requires many stages, consumes significant amounts of chemicals, and generates large volumes of wastewater. The more complex the mineralogy of the deposit, the more difficult and costly the separation process becomes. For example, light rare earth elements like neodymium and praseodymium, critical for permanent magnets, are easier to separate than heavy rare earth elements like dysprosium and terbium, which are also vital for high-performance magnets but found in much lower concentrations and are harder to isolate. The cost and environmental footprint of this chemical separation are the key constraints in establishing new processing capacity outside of China.

Companies in the Rare Earth and Critical Minerals Sector

Several companies are working to address these supply chain challenges, each with a distinct approach. MP Materials (MP), for instance, operates the Mountain Pass mine in California, the only integrated rare earth mining and processing facility in North America. They extract and process light rare earth concentrates, with plans to expand into full separation and magnet production. Their recent news includes closing in on deliveries to General Motors, a significant step in establishing a domestic supply chain for EV magnets. USA Rare Earth (USAR) is developing the Round Top heavy rare earth and critical minerals project in West Texas. This project focuses on a different geological setting, a rhyolite deposit, which could offer a distinct processing pathway compared to traditional hard rock or ion-adsorption clay deposits. The company aims to produce a range of critical minerals alongside REEs. Critical Metals (CRML) is an exploration and development company with a portfolio that includes the Tanbreez rare earth project in South Greenland. The recent security pact has brought renewed attention to this project, which holds heavy rare earth potential. Critical Metals also has interests in other critical mineral projects, including a low-waste refinery plan in Romania. Beyond rare earths, other critical minerals for batteries and energy storage are also seeing significant activity. Standard Lithium Ltd. (SLI) is focused on extracting lithium from brine resources, particularly in Arkansas. Their projects aim to leverage existing infrastructure from the bromine industry. Ioneer Ltd (IONR) is developing the Rhyolite Ridge lithium-boron project in Nevada, a unique deposit that could produce both battery-grade lithium carbonate and boric acid. This co-production model aims to improve economic viability. Atlas Lithium Corporation (ATLX) is advancing its hard rock lithium projects in Brazil, specifically in the Lithium Valley region of Minas Gerais. They are focused on spodumene production, a common source for lithium. American Battery Technology Company (ABAT) works on a different part of the supply chain: lithium-ion battery recycling. They aim to recover critical materials like lithium, nickel, and cobalt from spent batteries, creating a circular economy for these resources. Their Q4 2026 earnings call highlighted record revenue growth, demonstrating progress in this area. NioCorp Developments Ltd. (NB) is developing the Elk Creek project in Nebraska, which targets niobium, scandium, and titanium, with potential for rare earth byproducts. Niobium is crucial for high-strength steel, and scandium is used in lightweight alloys.

American Lithium Minerals, Inc.

American Lithium Minerals, Inc. (AMLM) is an exploration stage company, trading over the counter. The company's stated focus is on lithium and boron properties in Nevada. It is pre-revenue. AMLM's primary asset is the Sarcobatus Lithium property, which comprises 1,780 acres of mining claims in Central Nevada. The company has acquired and explored mineral rights in North America since its incorporation in Nevada on March 10, 2005. Its activities since 2009 have concentrated on lithium exploration at Sarcobatus. AMLM also states an intention to expand its exploration and acquisition efforts for mineral properties worldwide. The company has also outlined a strategy to develop Real World Asset Tokens to fund mining operations, aiming to merge public market credibility with blockchain agility for asset acquisition and trading. While the company has stated its intention to expand globally and explore new financing mechanisms, the public record does not yet establish any specific global acquisitions or a fully operational tokenized financing system. The most recent substantive filing, a Regulation A offering circular qualified on February 4, 2026, covered up to 80,000,000 units, with up to 120,000,000 shares issuable if attached warrants are fully exercised. Each unit includes one share of common stock and a warrant to purchase 1.5 shares of common stock, exercisable at $0.05 per share until December 31, 2028. The company has also previously acquired and divested cobalt, nickel, and graphite prospects in Central Nevada, and rare earth elements projects in Kingman, Arizona, and Southeast Illinois. Its current focus, however, remains lithium exploration in Nevada.

What to watch

The rare earth market remains highly sensitive to geopolitical developments and permitting progress. Watch for further updates on the Tanbreez permit in Greenland, specifically any official government decisions or timelines for environmental assessments. For MP Materials, the timing and scale of their GM deliveries will be a key indicator of their downstream processing capabilities. Any announcements from USA Rare Earth regarding pilot plant operations or off-take agreements for their Round Top project will be significant. In the lithium sector, look for further drilling results and preliminary economic assessments from Atlas Lithium in Brazil. Standard Lithium's progress on commercial-scale direct lithium extraction (DLE) facilities in Arkansas, particularly any updates on partnerships or funding, will be important. For Ioneer, watch for final permitting decisions for the Rhyolite Ridge project and any updates on their co-production of lithium and boron. American Battery Technology Company's continued revenue growth in battery recycling and expansion of their facilities will signal their impact on the circular economy. Finally, for NioCorp, watch for updates on the financing and development of their Elk Creek project, particularly as they progress towards securing off-take agreements for niobium, scandium, and potential rare earth byproducts., { "label": "Resource Discovery", "note": "Identification of rare earth deposits" }, { "label": "Permitting & Approvals", "note": "Government and environmental clearances for mining", "metric": "Tanbreez Permit" }, { "label": "Ore Extraction", "note": "Mining raw material from the ground" }, { "label": "Chemical Separation", "note": "Complex process to isolate individual rare earth elements" }, { "label": "Refining & Product", "note": "Producing battery-grade or magnet-ready materials" } ], "highlight": 2, "highlight_note": "Geopolitical shifts accelerate permitting, but approval remains a critical bottleneck for new supply.", "footnote": "Source: PubCo Insight analysis of market news and company filings, September 2026" }