The global race for rare earth elements has intensified, with Greenland’s vast untapped deposits emerging as a strategic frontier for Western nations seeking to break China’s dominance. Recent developments highlight increased investment and geopolitical maneuvering, as companies and governments bet on the autonomous Danish territory to secure supplies critical for technology and defense.
Rare earth elements, a group of 17 metals including neodymium and terbium, are indispensable for modern technologies such as smartphones, electric vehicles, wind turbines, and advanced military hardware like guided missiles and F-35 fighter jets. Despite not being geographically rare, their supply chain is heavily concentrated, with China mining over 60% of the world’s rare earths and processing more than 90%. Recent export restrictions announced by Beijing, though later suspended, exposed the vulnerability of Western economies and sparked a surge in industry shares, underscoring the urgent need for diversified sources.
Greenland, with its mineral-rich geology largely unexplored, has become a focal point in this scramble. The Tanbreez project in southern Greenland, managed by Critical Metals, is among the largest rare earth deposits globally, covering a 15 square kilometer area with significant reserves. CEO Tony Sage, surveying the site, emphasized the potential of the ‘red’ minerals rich in rare earths, backed by jagged peaks and fjord access. The project has attracted attention from U.S. and European entities, with non-binding agreements to supply materials to American rare earth processing firms linked to defense industries.
Geopolitical stakes are high, recalling former President Donald Trump’s 2019 offer to purchase Greenland for national security reasons, which was firmly rejected by Prime Minister Jens-Frederik Nielsen. Current U.S. efforts include a potential $120 million loan from the Export-Import Bank for Tanbreez, part of a broader strategy to build a ‘mine-to-magnet’ supply chain. This aligns with federal investments in North American critical mineral companies and recent multi-billion dollar deals with allies, as analyst Neha Mukherjee notes an unprecedented flow of public funding into the sector.
However, mining in Greenland faces formidable challenges due to its remote Arctic environment. Lack of infrastructure, such as roads, necessitates reliance on boats or helicopters for access and supply, with all facilities needing construction from scratch. Strict environmental regulations and public opposition, particularly for deposits like Kuannersuit that contain uranium and were blocked after local protests, add complexity. Only two mines are currently active, with nine companies holding commercial permits, and projects remain in early stages with economic feasibility under scrutiny.
Other companies are pursuing opportunities, including Australian firm Eclipse Metals, Canadian business Neo, and British company Alba Resources, which is acquiring the Motzfeldt project area. The region’s mineral potential is significant, with 25 of the EU’s critical raw materials present, but high costs and logistical hurdles persist. Economic geologist Diogo Rosa points to a global trend of exploring remote areas as resources elsewhere deplete, yet large companies may prioritize more profitable metals like copper or gold over rare earths.
For Greenland, mining offers a path to economic diversification beyond its $3 billion economy, which relies heavily on fishing, tourism, and Danish subsidies. Leaders hope for three to five mines within the next decade, potentially bringing substantial benefits and higher-skilled jobs to reverse population decline. Local opinions are mixed; in South Greenland, home to 6,000 residents, some caution about impacts on hunting and fishing traditions, while others, like Mayor Malene Vahl Rasmussen, anticipate improved work opportunities beyond cleaning and mechanics.
Looking ahead, South Greenland is on the cusp of change, with a new airport and deepwater port planned in Qaqortoq. As the global race for critical minerals accelerates, Greenland’s role in securing supply chains for the West will likely expand, balancing economic gains with environmental and social considerations. The coming years could see operational mines reshaping the region, offering hope for renewal while navigating the complexities of Arctic development.