Greenland in Trump’s gaze due to critical mineral potential 

President-elect Donald Trump last week refused to rule out military action or economic coercion in his pursuit to seize ownership of resource-rich Greenland, claiming the territory was vital for US national security.

Trump first floated the idea of acquiring Greenland back in 2019, emphasising the economic benefits of the proposed deal. But today his emphasis lies on more of a national security bent.

“As the polar ice caps melt due to the impacts of climate change, Greenland – and the wider Arctic region – is becoming an important geo-political battleground between the US, China, Russia, and the European Union (EU) as new trade routes open up and opportunities for natural resource extraction becomes more feasible,” said Bryan Bille, geopolitical and policy principal at Benchmark.

The EU has already courted Greenland as a potentially important supplier of critical minerals – signing a strategic partnership to develop sustainable raw materials value chains in November 2023.

Why does Trump want to acquire Greenland?

US officials want to bolster US military presence in Greenland to counter Russian ships and China’s emerging position in the Arctic region. But Greenland also holds strategically important reserves of 43 of the 50 “critical minerals” deemed vital to US national and economic security.

In particular, the island has significant deposits of rare earth elements (REE): critical for advanced military hardware such as F-35 aircraft and clean energy technologies such as electric vehicles (EVs) and wind turbines.

Greenland is home to only one mine tracked by Benchmark, the now-closed Kvanefjeld REE mine. However, melting ice caps are making new resources accessible and more economically viable, with Benchmark tracking 3 additional early stage exploration REE projects in the region.

China has previously expressed interest in Greenland’s raw materials, having pledged to build a “Polar Silk Road” in 2018. Although Chinese firms have yet to establish a significant foothold in the region, US officials fear they could move in first to secure resources.

In 2024 US officials lobbied Tanbreez, the developer of Greenland’s largest rare earths deposit, to not to sell its project to Chinese-linked firms, according to Reuters.

How have European leaders responded?

Trump’s comments have faced pushback from European leaders, with Germany and France reminding the President-elect against threatening Greenland, underscoring the inviolability of borders that underpins the NATO alliance.

Beyond the possibility for military action, Greenland holds sovereignty over its future (in 2009 Denmark granted the right to declare independence through referendum) and Danish officials have said it would be for Greenlanders to decide their status.

Greenland’s Prime Minister, Mute Egede, is pushing for independence from Denmark but has stated that the territory “is not for sale and will never be for sale”.

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