In recent developments, former President Donald Trump’s interest in Greenland has brought attention to the island’s vast mineral resources. This interest highlights Greenland’s potential role in transitioning from fossil fuels to green energy. Critical minerals found in Greenland are essential for this transition, as noted by the International Energy Agency (IEA), which emphasizes their importance in technologies like electric vehicles and wind turbines.
Greenland’s Mineral Wealth
A survey conducted in 2023 revealed that Greenland possesses 25 of the 34 minerals identified as “critical raw materials” by the European Commission. With estimates suggesting reserves of 36 to 42 million metric tons of rare earth oxides, Greenland stands as the second-largest reserve globally, following China. The IEA underscores the significance of minerals like lithium, nickel, cobalt, manganese, and graphite for battery performance, while rare earth elements are vital for manufacturing powerful magnets used in wind turbines and electric vehicle motors. Additionally, the demand for aluminum and copper is significant in electricity networks.
The global market for rare earth elements is expanding alongside the green energy sector, with projections indicating it will surpass €6.5 billion this year. This makes Greenland an attractive prospect for the United States, which relies entirely on imports for 12 minerals deemed critical by the US Geological Survey for the nation’s economy and security. By tapping into Greenland’s resources, the US could reduce its dependence on China, which currently processes over 90 percent of the world’s rare earth minerals.
According to the Centre for Strategic and International Studies (CSIS), the United States must reduce its reliance on foreign adversaries for critical minerals to preserve its national security, economic competitiveness, and energy resilience. Trump’s administration has been proactive in addressing this issue. In March 2025, he signed an executive order to maximize American mineral production, utilizing the Defense Production Act to provide loans and streamline mining projects on federal lands. Furthermore, Trump initiated an executive order to promote deep-sea mining, aiming for global leadership in responsible seabed mineral exploitation.
The US Department of State recently entered into a partnership with the Democratic Republic of the Congo, which holds over 70 percent of the world’s cobalt, to increase US private sector investment in mining while maintaining responsible resource management.
Challenges of Mining in Greenland
Despite its mineral wealth, Greenland faces significant challenges in industrial-scale mining due to its harsh climate and limited infrastructure. Mining is feasible for only half of the year, and analysts predict that extracting these resources would incur substantial costs. Nick Bæk Heilmann, a senior associate at Kaya Partners, contends that minerals are not the primary motivation behind the US interest in Greenland. He emphasizes that Greenland is open to mining investments and does not require acquisition by the US.
Heilmann also notes that the low prices of critical minerals undermine the business case for mining in Greenland.
Environmental Considerations and Climate Goals
The demand for critical minerals raises concerns about the ethical and environmental impacts of mining, both on land and at sea. Trump has pushed for expedited deep-sea mining, bypassing ongoing discussions with the UN’s International Seabed Authority, which has implemented a moratorium on seabed mining. Norway, the first country to approve deep-sea mining, has postponed its plans while opening certain areas for exploration. The Environmental Justice Foundation’s 2024 report suggests that deep-sea mining isn’t necessary for a fossil fuel-free future, advocating for new technology, a circular economy, and recycling to reduce mineral demand.
Steve Trent, CEO of the Environmental Justice Foundation, warns against deep-sea mining, stating, “We know so little about the deep ocean, but we know enough to be sure that mining it will wipe out unique wildlife, disturb the world’s largest carbon store, and do nothing to speed the transition to clean economies.”
Beyond Climate Policy
Experts caution against viewing Trump’s interest in Greenland solely through the lens of climate policy. While critical minerals are part of the US narrative, they are not the primary driver of Trump’s focus on Greenland. Some suggest that the expansion of US territory, as hinted in Trump’s speech, is a significant motivator. Environmental changes, such as global warming and the green transition, are reshaping the Arctic’s economic landscape. Rising temperatures could open new shipping routes and lower extraction barriers as Greenland’s ice sheets melt, improving the business case for resource extraction.
Researcher Jakob Dreyer from the University of Copenhagen emphasizes that understanding the dynamic requires considering global warming and its impact on the global economy. While Trump remains skeptical about climate change, his advisors recognize its implications.
Original Story at www.euronews.com