Critical Metals Corp. (CRML) stock jumped 30% in pre-market trading as of this writing on Tuesday, extending gains from Monday. The rally follows President Donald Trump’s warning to China over its tight export controls on critical minerals, although he softened his stance on Sunday.
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For context, Critical Metals is a mining company focused on securing critical minerals essential for clean energy and defense industries. Over the past 30 days, CRML stock has surged nearly 250%. Earlier this month, shares soared after a Reuters report indicated that the Trump administration is considering an equity stake in the company.
What’s Happening with CRML Stock?
Last week, President Trump threatened to impose 100% tariffs on China starting November 1 in response to Beijing’s strict export controls on rare earth elements. By Sunday, he softened his tone, saying the situation with China would “be fine.”
According to Alicia Garcia Herrero, an analyst at Natixis, Beijing is adding export controls on five more rare earth elements and also regulating the technology, equipment, and labor used to refine these minerals. Since Critical Metals produces rare earths outside of China, investors may see it as a strategic opportunity. CRML could benefit from higher global prices and increased demand for non-Chinese sources of these critical minerals. As a result, CRML stock jumped 55% on Monday.
Additionally, JPMorgan Chase announced Monday that it will invest up to $10 billion in industries critical to U.S. national security, including critical minerals. The investments will take the form of direct equity stakes and venture capital, the bank said. This added further momentum to CRML stock.
Is CRML Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Critical Metals’ stock based on one Buy assigned in the past three months. Furthermore, the average CRML stock price target of $14.0 per share implies 40% downside risk.
