Rare earth, real power: Why Trump triggered a global tug-of-war over Greenland

President Donald Trump has made headlines by insisting that the U.S. needs to “get” Greenland, “one way or another.” However, this is not the first time that American leaders have set their sights on the icy, sprawling island. Situated in the middle of contested waters between the U.S., Russia, and Western Europe, Greenland holds a strategic position that could protect the North Atlantic passage from Russian ships and submarines. President Harry Truman even offered to buy Greenland from the Danes back in 1946.

During the Cold War, Greenland served as a crucial military vantage point, and it continues to be of interest due to its location as a transfer point for communication cables that cross the Atlantic. European officials have raised concerns about Russian “ghost ships” damaging these cables by dropping their anchors and dragging them across the ocean floor.

In addition to its strategic significance, Greenland is also believed to be rich in critical and rare earth minerals such as cobalt, nickel, uranium, and iron. These minerals are essential for a wide range of industries, including electric vehicles, medical equipment, electronics, batteries, and defense systems. While China currently dominates the global supply chain for rare earth minerals, Greenland could potentially offer a new source of these valuable resources.

Vice President JD Vance, accompanied by second lady Usha Vance, national security advisor Mike Waltz, Energy Secretary Chris Wright, and Sen. Mike Lee, recently visited Greenland to underscore the U.S.’s interest in the island. During the trip, Vice President Vance criticized Denmark for what he described as underinvestment in the people of Greenland and their security.

Greenland’s vast mineral resources have the potential to shift the balance of power in the global rare earth market. With China currently controlling 60% of the world’s supply, Greenland’s reserves could be a game-changer. However, accessing these resources is challenging due to the island’s icy terrain and strict environmental regulations.

While the U.S. has expressed interest in investing billions in mining projects in Greenland, the territory’s economy currently relies heavily on fishing and Danish financial support. The U.S. sees Greenland as a key strategic asset for maintaining international safety and security, particularly as the Arctic region becomes increasingly accessible due to melting ice caps.

Despite the U.S.’s interest in Greenland, the territory itself has shown resistance to the idea of joining the U.S. In response to Trump’s statements about acquiring Greenland, Denmark announced a $2 billion investment in defense on the island. Danish officials have acknowledged the growing strategic importance of the Arctic region and the need for a stronger military presence in Greenland.

As the geopolitical competition in the Arctic region heats up, Greenland’s strategic value is becoming increasingly apparent. With its vast mineral resources, strategic location, and potential for economic development, Greenland is poised to play a significant role in shaping the future of international relations in the region.