In recent years, the focus on Greenland has intensified, particularly after U.S. President Donald Trump expressed interest in purchasing the autonomous region of Denmark. Trump’s reasoning? National security concerns, which hinge on Greenland’s strategic location in the Arctic. The region’s proximity to critical global shipping routes, its importance to missile defense systems, and its potential in a rapidly changing climate make it an attractive geopolitical prize. However, the true driver behind this interest lies deeper—Greenland’s untapped wealth of rare earth elements (REE), a resource essential to modern technology and the green energy transition.

What Are Rare Earth Elements (REE)?

Rare earth elements are a group of 17 metallic elements in the periodic table, including 15 lanthanides, along with scandium and yttrium. Despite their name, rare earths are not particularly scarce; in fact, they are relatively abundant in the Earth’s crust. However, they are rarely found in concentrated deposits, which makes their extraction both challenging and expensive. These elements possess unique magnetic, fluorescent, and conductive properties that make them indispensable in a wide range of high-tech applications, from consumer electronics to defense systems.

REEs are crucial for the development of green technologies like electric vehicles (EVs), wind turbines, and energy-efficient electronics. They are also used in the production of medical devices, satellites, lasers, and military technology, such as precision-guided munitions and radar systems. The demand for these materials has surged as global industries push for decarbonization and digitalization, creating fierce competition among nations for access to the limited sources of these elements.

Greenland’s Rare Earth Potential

According to the United States Geological Survey (USGS), Greenland is sitting on one of the largest untapped reserves of rare earths in the world, with estimated reserves of about 1.5 million metric tons. This is nearly as large as the known reserves in the United States (1.8 million metric tons). Greenland’s potential becomes even more significant considering the fact that it is a part of the Arctic, a region becoming increasingly important as climate change melts sea ice, opening new shipping lanes and access to untapped resources.

While Greenland has not yet engaged in large-scale mining of rare earths, the potential economic benefits are enormous. The island’s reserve of rare earths, along with other valuable resources such as uranium and thorium, is a prime target for multinational companies, including those based in the U.S. and China. However, the Greenlandic government has been cautious about opening its doors to foreign mining interests, primarily due to environmental concerns. Many locals worry about the health and environmental risks posed by mining near radioactive elements like uranium, fearing radioactive contamination could affect nearby communities.

In 2021, a referendum in Greenland led to the suspension of foreign investment in mining projects. While some citizens saw mining as a path toward economic growth and even independence from Denmark, the risks to public health and the environment proved too great to overlook. The government’s stance has led to a halt in large-scale rare earth extraction, for now.

The Global Race for Rare Earths

China is the dominant player in the rare earth market, holding around 40% of the world’s known reserves. Other countries with significant reserves include Vietnam, Brazil, Russia, India, and Australia. The U.S., in contrast, holds a much smaller share of the global stockpile. This imbalance has fueled concerns about global supply chains, particularly for critical industries dependent on rare earths.

In recent years, competition for these elements has become a key aspect of the global trade and political landscape. The U.S. has found itself in an increasingly tense relationship with China, particularly when Beijing restricted exports of critical rare earth elements like gallium and germanium, which are vital for industries ranging from electronics manufacturing to renewable energy technologies. The U.S. has sought to reduce its dependency on China by turning to alternative sources, such as Greenland, to secure its own supply.

The importance of rare earths in the modern geopolitical context cannot be overstated. As nations vie for access to these critical resources, the control over them becomes as important as any military or economic strategy.

The Environmental and Political Challenges

The extraction of rare earths, particularly from locations like Greenland, is fraught with environmental concerns. These metals are often found alongside radioactive elements like uranium, and the process of extracting them can result in contamination of water and soil. The potential for environmental damage has led to strong opposition from local communities, particularly in Greenland, where the population is concerned about the long-term impact on their way of life.

The political dynamics surrounding rare earth mining are complex. Greenland’s desire for economic independence from Denmark and its cautious approach to foreign investment complicate the issue further. While Greenland’s vast mineral wealth could provide a significant boost to its economy, it also raises questions about the potential environmental costs and the social implications for local communities.

A Global Battle for Resources

The race for rare earths is not just a matter of national security or economic gain—it’s a crucial element in the ongoing battle for technological and industrial supremacy. The demand for these materials is expected to grow exponentially in the coming decades, as industries across the globe transition to green energy and digital technologies. The countries that can secure reliable access to rare earths will be better positioned to lead in innovation and energy production.

For now, Greenland’s rare earths remain largely untapped, but as the world shifts toward cleaner technologies, the competition for these elements will intensify. Whether Greenland will continue to resist foreign mining or open its doors to global companies remains to be seen. However, one thing is clear: the strategic value of Greenland’s rare earth deposits will continue to make it a highly contested region in the geopolitical landscape. The future of rare earth elements will not only shape the global economy but also determine the balance of power in the 21st century.