January 23, 2026
Finance

Critical Metals Corp Shares Show Mixed Momentum Following Key Strategic Updates

After recent disclosures on production off-take agreements and strategic partnerships, Critical Metals Corp navigates market reactions amid geopolitical developments

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Summary

Critical Metals Corp reported entering multiple non-binding term sheets for the entire planned output of its Greenland-based Tanbreez rare earth project and announced a joint venture with a Saudi industrial group. Following these developments, the stock experienced a significant rally but pulls back mildly amid mixed market signals. The company's forward-looking initiatives include establishing a pilot plant in Greenland scheduled for 2026, positioning it as a notable player in the Western-aligned minerals supply chain.

Key Points

Critical Metals secured four non-binding term sheets covering the entire planned output from its Greenland-based Tanbreez rare earth project.
The company initiated a joint venture with a Saudi Arabian industrial conglomerate to develop a processing facility targeting the U.S. military-industrial sector.
Plans are underway to build a pilot plant in Greenland, expected to commence operations by May 2026, to support processing activities of rare earth elements.
Stock performance shows strong short-term momentum with the price trading significantly above its moving averages, reflecting investor optimism amid geopolitical and internal company developments.

Critical Metals Corp (NASDAQ: CRML) shares have exhibited relative steadiness on Friday, even as the company faces investor scrutiny following a recent strategic business update. The modest upward movement in share price contrasts with prior market volatility linked to the company's announcement of key developments regarding its rare earth element projects and partnerships.

The company recently disclosed that it has executed four non-binding term sheets that effectively allocate 100% of the planned production from its Tanbreez project in Greenland. This rare earth concentrate offtake arrangement underscores Critical Metals’ active efforts to secure sales channels, offering enhanced revenue visibility. The deposits targeted by the Tanbreez project are characterized by elevated concentrations of heavy rare earth elements, critical components in defense technologies and electric vehicle magnet manufacture.

In addition to these offtake arrangements, Critical Metals announced the formation of a joint venture with a Saudi Arabian industrial conglomerate. This new partnership is tasked with establishing a processing facility dedicated to serving the U.S. military-industrial complex, an initiative that aligns with broader geopolitical interests and supply chain security.

Further underlining its strategic roadmap, the company revealed plans to construct and operate a pilot plant in Greenland, with an operational timeline slated for May 2026. This facility aims to support pilot-scale processing associated with the Tanbreez rare earth development, reinforcing Critical Metals’ role as an emergent mining and processing entity.

These announcements have coincided with a complex market response. Earlier in the week, Critical Metals stock experienced a pronounced rally of approximately 20%, buoyed by geopolitical tensions and the positive company disclosures. However, the recent slight retreat appears to reflect a consolidation phase amid mixed technical indicators.

Crucially, Critical Metals’ connection to Greenland’s strategic mineral assets places it at the crux of evolving U.S.–European geopolitical considerations. The recent Greenland framework, which helped prevent the imposition of EU tariffs on rare-earth imports, reduces the likelihood of substantial trade barriers. This regulatory environment facilitates the financing of long-term offtake contracts and supports project development.

By effectively securing term sheets that presell the entirety of the Tanbreez project’s expected output, Critical Metals reduces the project's financial risk, improves potential project debt profiles, and may lower the company’s cost of capital. This secured revenue stream could attract additional strategic partnerships, complementing the existing joint venture with the Saudi industrial partner. Should Greenland sustain pro-Western policy stances, investor perceptions may shift. Currently viewed largely as a speculative exploration stock, Critical Metals may increasingly be perceived as a critical supplier within a government-supported supply chain for essential minerals.

From a technical market perspective, the stock continues to show dynamic performance indicators. Trading at 45.9% above its 20-day simple moving average (SMA) and 74.2% above its 100-day SMA, the stock demonstrates notable short-term momentum. Year-on-year, shares have surged 147.07%, fluctuating near their 52-week highs rather than lows.

The Relative Strength Index (RSI) reading of 68.80 occupies a neutral zone, signifying the stock has not entered overbought territory despite recent gains. Complementing this, the Moving Average Convergence Divergence (MACD) remains above its signal line, indicating ongoing bullish momentum. Together, these indicators suggest a market scenario characterized by mixed trends rather than clear directionality, underscoring the need for measured investor responses.

Market technicians identify key resistance for the stock at the $18.00 level, while immediate support is noted around $16.50, framing the trading range within which investors may expect price fluctuations in the near term.

A scan of Critical Metals’ rankings by the Benzinga Edge system designates the company as a 'High-Flyer,' evidenced by a strong Momentum score of 98.9 that outperforms the broader market. This distinction highlights the stock’s pronounced price trend. However, the absence of equally strong Value and Quality scores serves as a cautionary signal, indicating the stock is currently priced for elevated expectations. Investors are advised to remain attentive to momentum while employing stringent risk management measures such as stop-loss orders.

At the time of reporting on Friday, Critical Metals shares were valued at $18.86, marking an increase of 2.17% against the prior close, according to Benzinga Pro data.


Given these elements, Critical Metals Corp is navigating a pivotal phase characterized by transformative business initiatives against a backdrop of complex geopolitical influences and market dynamics. The company’s connections to strategic rare earth assets in Greenland and its engagements in forming processing infrastructure partnerships underscore its evolving role within the minerals sector, particularly in applications critical to defense and clean energy technologies.

Risks
  • The stock is currently priced for perfection, indicated by high momentum but lacking strong value and quality metrics, posing potential downside risk if expectations are unmet.
  • Dependence on geopolitical stability and supportive policies in Greenland and between the U.S. and EU, which if disrupted could affect trade conditions and project financing.
  • The non-binding nature of the term sheets for offtake agreements introduces uncertainty regarding the finalization and execution of sales contracts.
  • Market indicators present mixed momentum signals, suggesting potential volatility and the need for cautious trading strategies.
Disclosure
Education only / not financial advice
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