Greenland’s challenging climate and limited infrastructure have hindered the development of rare earth mining

Greenland's Rare Earth Mining: Challenges and Geopolitics

Greenland’s unforgiving climate, limited infrastructure, and complex geology have so far made it impossible to establish a mine for extracting the rare earth elements essential to modern technology. Even if President Donald Trump were to succeed in his bid to gain control of the Arctic territory, these fundamental obstacles would remain.

Since China, the world’s second-largest economy, dramatically limited rare earth exports following U.S. tariffs last spring, Trump has made it a priority to reduce America’s dependence on Chinese supplies. His administration has poured hundreds of millions of dollars into the sector and acquired stakes in several companies. Trump has now revived the notion that taking Greenland from Denmark could resolve the rare earth supply issue.

“We are going to do something on Greenland whether they like it or not,” Trump declared on Friday.

Despite these ambitions, it could be years—if ever—before Greenland is able to produce rare earth elements. While some companies are making attempts, most projects have not progressed beyond initial exploration, with an estimated 1.5 million tons of rare earths still locked in Greenland’s rocks. Trump’s interest in the island may be driven more by a desire to counter Russian and Chinese influence in the Arctic than by the pursuit of minerals like neodymium and terbium, which are vital for manufacturing high-strength magnets used in electric vehicles, wind turbines, robotics, and military aircraft.

Tracy Hughes, founder and executive director of the Critical Minerals Institute, commented, “The obsession with Greenland is rooted more in geopolitical maneuvering and military strategy than in providing a practical solution for the technology industry. The excitement far exceeds the scientific and economic realities of these resources.”

Trump acknowledged these geopolitical motivations at the White House, stating:

“We don’t want Russia or China going to Greenland. If we don’t take Greenland, you could have Russia or China as your neighbor. That’s not going to happen.”

Mining Obstacles in Greenland

Diogo Rosa, an economic geology specialist with the Geological Survey of Denmark and Greenland, explained that the main hurdle for mining in Greenland is its isolation. Even in the more populated southern regions, there are few roads and no railways, meaning any mining operation would need to build its own infrastructure. Additionally, power generation and skilled labor would have to be sourced locally or brought in from abroad.

Environmental and Technical Concerns

Patrick Schröder, a senior fellow at Chatham House in London, noted that mining rare earths in Greenland’s delicate Arctic ecosystem raises environmental concerns, especially as the island seeks to grow its tourism sector. The chemicals used to extract minerals from rock can be highly polluting, and rare earths are often found alongside radioactive uranium, adding further risks.

Much of Greenland is covered by ice, and its northern fjords are frozen for much of the year. The rare earths present are typically embedded in a complex mineral called eudialyte, from which no profitable extraction method has yet been developed. In contrast, elsewhere these elements are usually found in carbonatites, which are easier to process.

David Abraham, an industry expert and author of “The Elements of Power,” remarked, “If we’re competing for critical minerals, we should prioritize resources that are more accessible to the market.”

Uncertain Prospects for Mining Projects

Recently, Critical Metals’ stock value more than doubled after announcing plans to build a pilot plant in Greenland. However, this company and over a dozen others exploring the island’s deposits are still far from launching actual mining operations and would need to secure hundreds of millions of dollars in funding.

The Tough Economics of Rare Earth Production

Even the most promising rare earth projects can struggle financially, especially when China floods the market with surplus supply to lower prices and eliminate competitors—a tactic used repeatedly in the past. At present, most critical minerals must be processed in China.

During the one-year pause on stricter Chinese restrictions, which Trump said Xi Jinping agreed to last October, the U.S. has been working to expand rare earth supplies outside China. Several companies worldwide are already producing rare earths or magnets and can ramp up output much faster than any Greenland project, which Trump has even threatened to take by force if Denmark refuses to sell.

Ian Lange, an economics professor at the Colorado School of Mines, observed, “Everyone is racing to reach the finish line, but starting a project in Greenland is like going back to square one.”

Shifting Focus to Viable Alternatives

Many industry experts believe the U.S. should support established companies rather than pursue new rare earth mining ventures in Greenland, Ukraine, Africa, or other regions. Numerous projects in the U.S. and allied countries like Australia are further along and located in areas with better accessibility.

The U.S. government has invested directly in MP Materials, which operates the only rare earth mine in the country, as well as in a lithium producer and a company that recycles batteries and other products containing rare earths.

Scott Dunn, CEO of Noveon Magnetics, believes these investments should help reduce China’s dominance, but notes that shifting the balance is difficult when over 90% of global rare earths originate from China.

“There are very few organizations with a proven track record of delivering results in this field, and that’s where efforts should be concentrated—especially from the perspective of the U.S. government,” said Dunn, whose Texas facility produces more than 2,000 metric tons of magnets annually using materials sourced outside China.

Reporting by Funk from Omaha, Nebraska, and Naishadham from Madrid.