After spending more than a month trading above $10 per share, Critical Metals (CRML 3.66%) has returned to single-digit price territory. Shares were priced at $10.50 when the market opened today, but as of this writing, the stock is trading below $10 per share. Those concerned about today's dip may be even more alarmed by the fact that the company hasn't reported any negative news that could explain the stock's decline -- though there is an explanation.
As of 1:42 p.m. ET, shares of Critical Metals are down 8.3%.
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NATO action in Greenland has investors rattled
In response to President Trump's aggressive tone regarding the acquisition of Greenland, NATO is fortifying its presence in the autonomous territory of Denmark with the launch of a new mission, Arctic Sentry.
NASDAQ: CRML
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Sweden announced today that it will send fighter jets and ground troops to participate in military exercises, contributing to the other nations that are taking part in the mission.
Reuters reported yesterday, NATO Secretary General Mark Rutte commented on the military operation: "We will not only be able to leverage what we are doing much more effectively. We will also be able to assess the gaps we need to fill. And, of course, we will fill them."
Critical Metals is currently developing the Tanbreez Rare Earth Project in Greenland. A preliminary economic assessment completed in March 2025 found that the project has a before-tax net present value of $2.7 billion to $3.4 billion.
Should investors avoid Critical Metals stock with Operation Arctic Sentry set to begin?
With the rift between President Trump and NATO widening, it's unsurprising that investors are cautious about Critical Metals stock right now. At this point, it seems unlikely that the escalating tensions will impede Critical Metals from developing the Tanbreez Rare Earth Project. Nonetheless, more conservative investors who are uninterested in enduring the volatility in Critical Metals stock may prefer a lower-risk rare earth opportunity such as MP Materials stock.
