Reviewed by Gotrade Internal Analyst
President Donald Trump is once again voicing his ambition to control Greenland to secure global rare earth supplies, which are currently dominated by China. While pitched as a strategic fix for the tech and defense industries, experts see this plan as more of a geopolitical posturing rather than a realistic economic solution.
Key Takeaways:
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Trump’s ambition hits a wall with Greenland’s harsh environment and a total lack of basic infrastructure like roads.
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This move is triggered by China restricting rare earth exports, as they currently control 90% of the global market.
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Speculative mining stocks saw a momentary spike, but experts warn that extraction in Greenland hasn't been proven commercially viable yet.
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This push comes after China tightened rules on buying critical minerals as a retaliation against US trade tariffs. Minerals like neodymium and terbium are crucial for high-performance magnets used by EV makers like Tesla, Inc. and for advanced robotics.
However, mining in Greenland is no walk in the park. Most of the territory is covered in ice and lacks decent logistical access. Diogo Rosa, a researcher from the Geological Survey of Denmark and Greenland, noted that any mining project would basically have to build its own roads and power plants from scratch.
The map above shows the spread of critical material deposits in Greenland, but these spots are in remote areas that are extremely hard to reach. On top of access issues, rare earths in Greenland are usually encased in a complex rock called eudialyte, and so far, there is no proven processing method to extract them that actually makes economic sense.
Environmental issues are also a major red flag. Separating these minerals requires toxic chemicals that could ruin the tourism industry Greenland is trying to build. Patrick Schröder from Chatham House warned that these minerals are often found alongside radioactive uranium, adding to the processing complexity.
Even though shares of exploration companies like Critical Metals doubled after this news broke out, most projects there are still in the very early stages. Industry experts believe the US should focus on more mature projects in friendly regions like Australia or domestically, rather than chasing a long shot in the Arctic.
Reliance on China’s supply chain is indeed a risk for defense contractors like Lockheed Martin Corporation that need these materials for fighter jets. But forcing mining operations in such an unforgiving environment is seen as taking a step back compared to optimizing mines that already have market access.
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Reference:
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AP News, Greenland’s harsh environment and lack of infrastructure have prevented rare earth mining. Accessed on January 12, 2026
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Featured Image: Shutterstock
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