Critical Metals (CRML) Plunge 1.48% to 2025 Low as DFS Delays and Financing Pressures Mount

Shares of Critical Metals (CRML) slid 1.48% on October 4, 2025, hitting a trough unseen since October 2025, with an intraday decline of 2.72%. The move followed a volatile period marked by strategic developments and financing activities, despite a 10-year offtake agreement with Ucore Rare Metals, a U.S. Department of Defense-backed rare earth processor, which was secured in August. This partnership, aimed at off-taking rare earth concentrates from CRML’s Tanbreez Project in Greenland, underscores the project’s alignment with U.S. national security priorities and adds credibility to its operational viability.

Recent drilling results from the Tanbreez Project revealed high-grade concentrations of heavy rare earth elements (HREO) and gallium, a semiconductor material, further solidifying the project’s economic potential. The findings, including 27.0% HREO and 103 ppm gallium, highlight CRML’s ability to compete in global markets dominated by China’s rare earth supply chain. However, the company’s progress on its bankable feasibility study (DFS) remains critical. As of September 2, the DFS is 70% complete, with completion expected by year-end. Delays or cost overruns in this study could dampen investor confidence, as it is pivotal for securing regulatory approvals and project financing.

CRML’s strategic positioning in the rare earth sector is bolstered by its focus on high-demand materials like HREs and gallium, which are essential for electric vehicles and renewable energy technologies. The company’s June 2025 agreement for a $120 million loan from the U.S. EXIM Bank also alleviates liquidity concerns, reducing reliance on equity financing. Yet, a $22.5 million financing round in April triggered a 15.14% share price drop due to investor concerns over dilution. This underscores the delicate balance between securing capital and maintaining shareholder trust.

Regulatory and environmental hurdles in Greenland pose ongoing challenges. The DFS must address Arctic climate conditions and stringent environmental regulations to secure permits and community support. ESG considerations are increasingly vital for investor sentiment, and CRML’s ability to demonstrate sustainable practices will influence long-term performance. Institutional interest, including stakes from Linden Advisors LP and XTX Topco Ltd, reflects confidence in the company’s strategic initiatives. However, short-term volatility persists amid broader sector dynamics, with CRML’s three-year total return lagging at -20.79% despite outperforming the S&P 500 in 2025.