The Trump administration’s interest in acquiring Greenland has reignited discussions about the territory’s vast potential for valuable resources. Greenland, a territory of Denmark, has a treasure trove of rare minerals critical to the U.S. tech sector. Moreover, it provides an incredibly important strategic edge for our national security. China already controls nearly 70% of the rare earths market. In return, the U.S. has made a point of plugging its own supply chains by investing in their preservation on Greenland’s territory.
Since last year, the Trump administration has had its eyes on Greenland’s mineral riches. They are especially keen on locking up control of strategic resources such as cobalt, nickel and platinum. These minerals are critical to our economy and national security, used in everything from renewable energy technologies to defense applications. In addition, Greenland’s waters form what’s known as the GI-UK gap, a militarily vital chokepoint trade route, making its geopolitical importance even greater.
The administration’s interest in Greenland fits into this broader strategy. This strategy increases U.S. economic and national security and strengthens American manufacturing and innovation. Environmentalist Richard Branson notes that the endeavor of extracting resources from this frozen—and inhospitable—land is not only expensive but dangerous. They think the potential “gold rush” may be a bit presumptive.
The Landscape of Greenland’s Resources
Greenland’s rocky landscape is mostly shockingly white and dark, devoid of permanent infrastructure needed for major scale mining projects. The territory’s extreme environment, which is subject to rock slides, tsunamis, and shifting grounds, only adds further challenges to any extraction. Nonetheless, companies such as KoBold Metals have been awarded permits for mining operations specifically focused on extracting valuable minerals.
With all that said, KoBold Metals has gotten a lot of attention. That interest has been echoed by influential tech investors including Meta’s Mark Zuckerberg, OpenAI’s Sam Altman, Amazon’s Jeff Bezos and Microsoft’s Bill Gates. At a $3 billion valuation, KoBold is the latest sign of the increasing attraction that Greenland is drawing to become a potential resource hub.
Drew Horn, an industry analyst, noted, “There is a significant opportunity for U.S. investment in mining and energy production in Greenland.” He further asserted that the territory “literally is the best place in the world for data centers,” highlighting its potential beyond just mineral extraction.
The Mining Industry’s Perspective
The global mining industry is currently laying the groundwork to present Greenland as the next great investment frontier. Dryden Brown, an advocate for technological advancement in mining, stated that there are plans to “extract critical resources, terraform the land with advanced technology to make it more habitable, and build a mythical city in the North.” Such ambitious visions are meant to lure transformational public and private investment.
Doubt lingers, especially when it comes to their soundness and specifically the achievability of these plans. Paul Bierman expressed concerns about the historical context of mineral investment in Greenland, remarking that the region is “littered with the corpses of mineral investors.” This short announcement highlights the danger and futility of pursuing mining operations in such uninviting environments.
Further, as public interest group leaders like Robert Weissman have argued, we should question U.S. interests in Greenland’s wealth of natural resources. He suggested that for some investors, “put money into the Trump family bank and the money comes back to you in the form of some government policy.” This claim is indicative of broader anxiety about alleged self-dealing, crony capitalism—the mingling of business and government.
The Future of Greenland’s Development
While the world discusses what Greenland’s resources could mean for the future, the crypto industry has joined the discussion as well. The startup Lympid recently announced it has tokenized property in Greenland, opening new avenues for investment and participation in its economic development. This innovative approach aims to democratize access to what many consider one of the world’s most unique investment frontiers.
Joao Lages, a key figure in this initiative, stated, “This isn’t just about real estate; it’s about democratizing access to one of the world’s most unique and promising investment frontiers.” He added that they are “creating a bridge for global investors to participate in the region’s growth story.”
Even with high hopes among the international investment and military sectors, abundant opportunity doesn’t change the realities on the ground. Environmental challenges and geopolitical considerations will play an enormous role in determining the success of any extraction endeavors. These three elements will combine to define the context in which these operations occur.