Greenland’s vast ice cap, which holds enough water to raise global sea levels by 23 feet, is disappearing at an alarming rate. Between 2002 and 2023, the island lost an average of 270 billion tons of ice annually, as winter snowfall failed to offset increasingly intense summer temperatures. This melt is a significant driver of global sea level rise, now increasing at a quarter of an inch per year.
Beneath this vanishing ice, however, lies something the world desperately needs: rare earth elements essential to modern technology and the clean energy transition. With a population comparable to Casper, Wyoming, Greenland could soon transform into a mining powerhouse, writes Wired.
Fishing has long been Greenland’s dominant industry, but its government is eager to diversify. While gold and ruby mines already exist, the harsh Arctic environment makes mining a logistical challenge. Yet, the island’s vast rare earth deposits and global geopolitical tensions are drawing intense interest from mining companies.
When former U.S. President Donald Trump floated the idea of purchasing Greenland, it wasn’t just about military strategy—it was also about mineral wealth. One Greenland official noted, “The island possesses 39 of the 50 minerals the United States has classified as critical to national security and economic stability.” Though Greenland, an autonomous Danish territory, is not for sale, its government is open to business, especially in the mining sector. The recent rise of the pro-business Demokraatit Party signals a push to accelerate resource development, even as leaders push back against U.S. political rhetoric.
Rare earth elements are the backbone of modern technology—found in everything from LED screens and batteries to electric vehicle motors and advanced weaponry. Demand is skyrocketing; between 2020 and 2022, the value of rare earths used in energy transition quadrupled and is projected to increase tenfold by 2035. By 2030, Greenland could supply nearly 10,000 tons of rare earth oxides to the global market.
Western nations are particularly concerned about China’s dominance in this field. China currently controls 70% of global rare earth production and has a history of leveraging this dominance as an economic and political tool.
“They control every stage—the mining, the processing, and the final product,” said Heather Exner-Pirot, director at the Macdonald-Laurier Institute.
Challenges and Ethical Concerns
Despite the potential riches, Greenland’s mining ambitions face considerable hurdles.
Remote locations, extreme weather, and the lack of infrastructure make operations costly and complex.
Furthermore, environmental concerns loom large. Mining threatens local ecosystems and traditional ways of life, sparking fears among Greenland’s Indigenous population, which makes up 90% of the island’s residents.
“It’s been a shock for Greenland,” said Aqqaluk Lynge, former president of the Inuit Circumpolar Council, criticizing the perception of Greenlanders as expendable in the resource rush.
With the world eager to break China’s rare earth monopoly and secure a stable supply, Greenland stands at a crossroads. Whether the island can navigate economic opportunity, environmental responsibility, and geopolitical tensions remains to be seen—but its role in the global mineral race is undeniable.
