Greenland, the world’s largest island, has found itself at the center of the world’s attention. Its considerable stockpiles of raw materials are key for the development of electronics, green energy, and military technologies. As climate change accelerates the melting of Greenland’s ice, these resources are becoming much easier to access. This situation has drawn attention from leaders such as Donald Trump, who covets Greenland for its strategic location and rich deposits of critical minerals.
In 2020, the European Commission classified 25 of the minerals in Greenland as “critical raw materials.” These include some crucial materials, such as graphite, niobium and titanium. These critical minerals are the lifeblood of modern industries, especially for hard-rock mining’s future in renewable energy and advanced technology. What was less known is that Greenland likely holds other large reserves—particularly, rare earth metals, which are essential in the production of high-tech, high-value devices.
Trump’s interest in Greenland is not solely about its resources but about the geopolitical implications of controlling such assets. He has stated, “I want Greenland for security – I don’t want it for anything else.” Analysts suggest that Trump’s motivation is largely driven by national security concerns, as well as a desire to counter China’s growing influence in the rare earths market.
Greenland’s strategic location enhances its appeal. The island serves one more, critical function — as a makeshift imperative shipping lane. Its rare earth deposits have a key part in the U.S. strategy to decrease China’s currently overwhelming role in this industry. Mike Waltz, a U.S. Congressman, emphasized this point, stating, “This is about shipping lanes. This is about energy. This is about fisheries. And, of course, it’s about your mission, which is keeping us safe.”
With the proper investment, Greenland could be a world leader in sustainable mining with only two productive mines in operation on the island. Exploration licenses have since been increased to cover 100 blocs. Mining must contend with issues such as extreme climate, lack of infrastructure and an unskilled workforce. Mining operations are expensive and frequently complicated by the logistical challenges that come with Greenland’s remote geography.
Jennifer Spence, an expert on Arctic affairs and a Connaught Global Scholar, had just elucidated Donald Trump’s inner workings. She translated these interests through the lens of national security and economic interests. “His logic is that there’s a national security imperative,” she noted, while adding that “my belief is that this is much more economically driven.”
The rapidly melting ice sheet in Greenland is creating new challenges, but an opportunity for the extraction of new resources. As the ice recedes, it exposes rock formations that are ripe for mining while creating river runoff that could be harnessed for hydroelectric power. Professor Andrew Shepherd remarked on this potential: “With the melting ice, you get the potential for hydro power in the area where the land is being exposed… so this presents itself as an interesting prospect.”
Since 2008, Greenland has pursued foreign investment in its nascent extractive industries. Yet, it has struggled in making a strong enough business case to lure these outside companies. Mikkel Runge Olesen highlighted this ongoing challenge: “Greenland has been trying to attract outside investments into its extractive industries for a long time, and has not had a lot of luck because the business case just hasn’t really been there.”
Given its unique geology, Greenland has attracted international interest in mining. Infamously, in 2019 the Trump administration tried to purchase the territory. Specifically, they approved $120 million in financing from the Export-Import Bank of the United States to back an American company’s mining development projects in Mongolia. This step highlights the U.S. government’s intent to weave its economic interests more broadly throughout its geopolitical strategy.
Countries around the globe are looking to develop new domestic and stable sources for rare earth materials. Greenland now stands at a key crossroads in balancing environmental stewardship and resource development. We need to achieve an appropriate balance between responsible development of our natural resources and protecting the delicate Arctic ecosystem. This challenge will be fundamental in the years to come.