The quest for rare earth elements in Greenland has faced significant obstacles due to the island's harsh environment, limited infrastructure, and challenging geology. Efforts to establish a mine to extract these valuable minerals, crucial for high-tech products, have so far remained unrealized. Even if former President Donald Trump succeeds in his ambitions to assert control over Greenland, the underlying challenges related to mining and extraction are unlikely to dissipate.
Trump has made it a priority to reduce China's dominance over global rare earth supplies, particularly after the country imposed sharp restrictions on exports in response to U.S. tariffs. The Trump administration has invested hundreds of millions of dollars and even acquired stakes in companies involved in rare earth production. Recently, Trump reiterated his interest in acquiring Greenland as a potential solution to the U.S.'s rare earth dilemma.
While Trump claims that U.S. control over Greenland is vital to counteract Russian and Chinese influence in the Arctic, experts caution that the prospect of successfully mining rare earths in Greenland remains distant. Most companies engaged in exploration have not progressed beyond initial stages, and significant concerns about the viability of extracting rare earths from the specific rock formations found on the island persist.
Tracy Hughes, founder of the Critical Minerals Institute, argues that the current fixation on Greenland tends to be more about geopolitical maneuvering than addressing the realities of mineral extraction. The actual scientific and economic feasibility of mining rare earth elements from Greenland is overshadowed by hype and speculation.
Trump further emphasized geopolitical stakes during a recent address, stating his unwavering intent to oppose any Russian or Chinese presence in Greenland. The profound remoteness and lack of infrastructure pose formidable barriers to mining operations, as any new venture would need to establish roads and railways, generate local power, and recruit skilled labor, which is not readily available in the area.
Environmental concerns also loom large. The mining of rare earths could severely impact Greenland's fragile Arctic ecosystem, especially as the territory aims to develop its tourism sector. The toxic chemicals required for mineral extraction are known to cause pollution during and after the mining process, further complicating the business of mining in environmentally sensitive regions.
Moreover, the geology of Greenland presents challenges, as rare earths are primarily located within a complex rock type known as eudialyte, for which no profitable extraction methods have yet been established. In contrast, rare earth elements elsewhere typically exist in more exploitable rocks like carbonatites, for which proven extraction techniques are available. David Abraham, a long-time rare earths expert, argues that attention should center on resources that are more feasible and quicker to market.
While Critical Metals recently announced plans for a pilot plant in Greenland, the road to an operational mine remains fraught with uncertainty. The majority of companies in the region have not yet secured the necessary funding or developed the needed infrastructure, and even the most promising projects struggle to turn a profit amidst price manipulations by Chinese firms, which have historically undercut competitors by flooding the market.
There is also the pressing issue of processing rare earths, which predominantly occurs in China. The U.S. is currently mobilizing to enhance its supply chain outside of China, particularly given a short-term exemption from additional restrictions set forth by Trump. Nonetheless, many companies around the world are already positioned to supply these critical materials more efficiently than potential operations in Greenland.
Industry experts advocate for prioritizing investments in proven projects and locations rather than pursuing the uncertain venture of establishing new mines in Greenland. Numerous mining projects within the U.S. and allied nations such as Australia are further advanced in their development, making them more viable as sources of rare earths.
The U.S. government has already allocated investments toward established entities, including a company operating the only rare earths mine in the U.S. The goal is to minimize reliance on Chinese resources while promoting domestic production capabilities. Scott Dunn, CEO of Noveon Magnetics, points out that existing efforts should be intensified rather than tentatively exploring untested markets like Greenland.
