Why Did Critical Metals Stock Soar 90% Last Month?

Geopolitical events have had investors buzzing about critical metals and mining companies over the past year. Interest in one in particular soared at the start of 2026. Several events, including a business update, sent shares of Critical Metals Corp. (NASDAQ: CRML) soaring 89.8% in January, according to data provided by S&P Global Market Intelligence.

That performance should garner investor attention and interest in the company. It should also give investors pause as to why the company is valued at over $1.5 billion with virtually no revenue yet.

Image source: Getty Images.

Critical minerals sweet spot

Critical Metals could be well-positioned to support the growing global demand for rare-earth minerals used across a wide range of applications. The metals are used in electronics, magnets needed for many high-tech applications, including renewable energy and electric vehicle (EV) motors, and batteries for hybrids, EVs, and energy storage.

The mining company has officially received approval to commence construction of its Tanbreez rare-earth project in Greenland. Tanbreez distinguishes itself in the rare-earth sector through an exceptional heavy rare-earth element profile. The Tanbreez Project stands out for its rich resources, making it a strategic asset in the global supply chain.

Last month, Critical Metals announced a new joint venture related to the project. It has plans to create a $1.5 billion rare-earth mineral processing facility in Saudi Arabia. That will act as a long-term recipient for 25% of Tanbreez's rare-earth production. Along with previously disclosed agreements, the entire rare-earth concentrate production from the Tanbreez Project now has long-term commitments.

That wasn't the only news that had the stock soaring last month. Critical Metals also announced that the Austrian government has renewed its Wolfsberg Project mining license for another two years. Wolfsberg is Europe's first fully permitted lithium mine and is considered an advanced, strategic lithium asset.

Investors have bid up Critical Metals stock because it appears to have a way to avoid China maintaining a stranglehold on the rare-earth industry. The Trump administration has expressed its desire to acquire or use Greenland for national security purposes. That includes its strategic mineral deposits. The president also recently proposed creating a $12 billion strategic minerals reserve.

Speculative investors want to get in ahead of the actual production and potential profits. Individual retail investors may also want to risk capital for the possible payoff from Critical Metals. As long as one goes in knowing the risks and allocates the proper amount of capital, the stock may be a candidate for the speculative portion of a portfolio.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.