Strategic and Economic Value of Greenland's Critical Minerals in the U.S.-China Tech and Geopolitical Competition

Greenland, a vast and resource-rich territory, has emerged as a pivotal player in the global race for critical minerals, with its deposits of rare earth elements (REEs), graphite, and other strategic resources fueling a high-stakes contest between the U.S., China, and the EU. As the world transitions to clean energy and advanced technologies, the island's untapped mineral wealth has become a focal point for geopolitical maneuvering and investment opportunities. However, the path to unlocking these resources is fraught with environmental, regulatory, and geopolitical risks that investors and policymakers must navigate carefully.

The Strategic Minerals Landscape in Greenland

Greenland's mineral endowment includes REEs such as dysprosium and terbium, essential for high-strength magnets in electric vehicles and wind turbines, as well as graphite and copper critical for battery production and electrical infrastructure according to research. The Kvanefjeld and Tanbreez projects, for instance, hold some of the largest REE deposits outside China, with the latter projected to produce 85,000 metric tons of rare earths concentrate annually once operational. These resources are not just economically valuable but also strategically vital for reducing reliance on China, which dominates 85% of global rare earth processing capacity.

Despite this potential, Greenland's mining sector remains underdeveloped. Only two mines-White Mountain Anorthosite and Aappulatuttoq Ruby Mine-have operated historically, with the latter closing in 2023 due to financial challenges. The Trump administration's recent interest in acquiring an equity stake in Critical Metals Corp's Tanbreez project underscores the urgency of diversifying supply chains. Meanwhile, the EU has signed a 2023 memorandum of understanding with Greenland to secure access to its critical minerals, aligning with its green transition goals.

U.S. and Chinese Geopolitical Rivalry

The U.S. has positioned itself as a counterweight to China's dominance in critical minerals. In October 2025, the Trump administration secured a $3 billion critical minerals deal with Australia, part of a broader strategy to build a resilient supply chain. Simultaneously, the U.S. Export-Import Bank is evaluating a $120 million loan for the Tanbreez project, reflecting a dual approach of public-private partnerships to secure strategic resources. These efforts are part of a larger push to achieve technological sovereignty, including vertical integration of rare earth magnet production.

Investment Opportunities and Risks

For investors, Greenland presents a mix of high-reward opportunities and significant risks. The Trump administration's proposed 8% equity stake in Critical Metals Corp, funded by converting a $50 million Defense Production Act grant, signals strong U.S. support for Greenlandian projects. Similarly, the EU's partnership with Greenland offers access to a market prioritizing sustainability and energy security.

Yet, challenges abound. Greenland's harsh climate, limited infrastructure, and high operational costs-such as the need for ice-free ports and year-round transportation- pose logistical hurdles. Environmental regulations, including mandatory Environmental Impact Assessments (EIAs) and Social Sustainability Assessments (SSAs), add layers of complexity. The 2021 uranium mining ban, still contested in international arbitration, further illustrates regulatory uncertainty.

Geopolitical tensions also loom large. While Greenland's government has emphasized openness to global investment, it remains wary of foreign overreach, particularly from China. The island's autonomy within the Kingdom of Denmark and its strategic Arctic location amplify its geopolitical significance, making it a potential flashpoint in the U.S.-China rivalry.

Conclusion: Balancing Strategy and Sustainability

Greenland's critical minerals hold immense strategic and economic value, but their development requires a delicate balance between geopolitical ambitions, environmental stewardship, and sustainable investment. For the U.S. and its allies, securing Greenland's resources is a key step in countering China's influence and ensuring supply chain resilience. For investors, the rewards are substantial, but the risks-ranging from regulatory shifts to environmental backlash-demand rigorous due diligence. As the global tech and energy transition accelerates, Greenland's role in this high-stakes competition will only grow, making it a critical arena for both opportunity and caution.