Greenland is emerging as a strategic flashpoint in the global race for critical minerals after new data showed the Arctic island holds an estimated 1.5 million metric tons of rare earth reserves, despite having no commercial production.
The renewed attention comes as President Donald Trump once again signals interest in asserting US influence over the Danish-ruled territory, triggering strong reactions from Denmark and European leaders. While Greenland’s geographic position is often highlighted, its mineral potential is increasingly seen as a central factor behind Washington’s focus.
China Still Dominates the Market
According to the US Geological Survey, China remains the undisputed leader in rare earth supply. In 2024, it produced 270,000 metric tons, accounting for well over half of global output, and controls reserves of about 44 million metric tons, by far the world’s largest.
This dominance gives Beijing major leverage over industries ranging from electric vehicles and renewable energy to defense systems and advanced electronics.
Untapped Reserves Outside China
Several countries hold large reserves but contribute little to production.
Brazil has an estimated 21 million metric tons but produces almost nothing. India, Russia, and Vietnam show similar patterns of large reserves with limited output.
Greenland now ranks among the more significant reserve holders, ahead of Canada and South Africa, yet remains entirely undeveloped.
Why Greenland Matters Now
Greenland’s reserves are seen as strategically valuable at a time when Western governments are trying to reduce dependence on Chinese supply chains.
Rare earths are essential for:
- Semiconductors and advanced manufacturing
- Electric vehicles and renewable energy systems
- Military and aerospace technology
Development in Greenland has long been slowed by environmental protections, infrastructure limits, and political opposition. But as supply security becomes a priority for the US and its allies, pressure to unlock these resources is growing.
Trump’s renewed focus on Greenland appears tied not only to geopolitics but also to access to future critical minerals. With China firmly entrenched as the dominant supplier, Greenland’s untapped reserves are increasingly viewed as a potential long-term alternative in the global rare earth race.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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