HOUSTON, Jan. 16 (Argus) - Greenland's natural resources have come back into focus since US President Donald Trump reignited interest in acquiring the Danish autonomous territory, but the island's rare earths and "critical minerals" are likely to remain largely undeveloped commercially due to the challenges of extraction and a lack of commercial viability without significant government financing.
Trump recently denied that rare earths and "critical minerals" were the main motivation for seeking the territory, saying "We want Greenland for national security, not for the minerals."
Nevertheless, members of the US government have previously noted some interest in its resources, including US Ambassador to the United Nations and former National Security Advisor Mike Pompeo, who told Fox News in a January 2025 interview that when asked about US interest in Greenland, "It's about the development and utilization of critical minerals, in addition to national security."
Geopolitical tensions intensify
Trump's chief policy advisor Stephen Miller told CNN last week that the US government's "official position" is that it should control Greenland "to protect and defend NATO and NATO interests."
This idea has been opposed by Europe, leading six European countries' leaders to sign a statement on January 6 defending Greenland's sovereignty in the face of US threats.
In the following days, Trump said that the US goal is to "get Greenland whether they like it or not," claiming that if the US does not acquire the territory, "Russia or China will take over Greenland."
US, Danish and Greenland officials met in Washington on January 14, but the talks ultimately did not reach an agreement. "It's clear that the president has a desire to conquer Greenland," Danish Foreign Minister Lars Løkke Rasmussen told reporters after the meeting. Rasmussen said the meeting revealed "fundamental differences" on the future of Greenland and "we were not able to change the US position."
In his push for the US to acquire Greenland, Trump now involves tariff threats against countries opposing the move. He said at a Friday event focused on improving healthcare in rural America that "If they don't agree to Greenland, I might put tariffs on them because we need Greenland for national security."
Known resources and extraction challenges
Greenland has significant reserves of rare earths and other "critical minerals," many of which play essential and sometimes irreplaceable roles in various applications across many sectors, including defense, energy, and automotive.
According to data from the Danish and Greenland Geological Survey (GEUS) and the US Geological Survey (USGS), the region is estimated to have 36.1 million tons of light and heavy rare earths, but only 1.5 million tons of proven resources.
According to the USGS, Greenland has the world's eighth-largest proven rare earth resources.
However, Greenland does not actively produce any rare earths.
According to GEUS estimates, in addition to rare earths, Greenland also has "high" resource potential for molybdenum, graphite, hafnium, niobium, platinum group metals, tantalum, and titanium. The island has significant uranium reserves, although its government banned the mining of this element in 2021.
GEUS said that despite the rich resources, few companies are involved in Greenland's mining industry due to complex geological and geographical factors, harsh weather, and limited existing infrastructure, which mean high operating costs. However, some rare earth and "critical mineral" projects are in the exploration stage and have shown strong interest in government funding to drive production.
Current projects Headquartered in the United States, Critical Metals holds the Tanbreez project in southern Greenland. According to the company, the project contains approximately 27% of the world's heavy rare earths, but it has not yet achieved commercial production. Last year, the company signed several off-take agreements, including with REalloys, Ucore Rare Metals, and the Saudi company Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers company. As of Thursday, Critical Metals stated that all the rare earth concentrate production from the project will be off-taken under long-term contract agreements.
In June 2025, Critical Metals received a letter of intent from the US Export-Import Bank for its Tanbreez rare earth project, covering research, pre-production, and initial mining, amounting to $120 million.
In June 2025, Greenland Resources, a Canadian company, obtained a 30-year license for the Malmberg project in eastern Greenland to mine molybdenum and magnesium, but it has not yet started commercial production. The company has signed long-term supply agreements for the project with Finnish stainless steel producer Outokumpu, German metal supplier Hempel Metallurgical, and Italian special steel manufacturer Cogne Acciai Speciali.
Greenland Resources has also received significant funding from European government agencies. The European Union stated in December last year that it would provide funds for the molybdenum project, noting that it could quickly meet the EU defense sector's demand for molybdenum. The project also received support from the European Raw Materials Alliance in 2022.
