President Donald Trump’s push for the U.S. to acquire Greenland from Denmark comes amid rising demand for the critical minerals that can be found in substantial reserves on the Arctic island nation.
Rare earth minerals, a term applied to a group of 17 elements including 15 metals, are used in a wide range of applications including artificial intelligence, consumer electronics, electric vehicles (EVs), aircraft engines, medical equipment, oil refining, semiconductors and military applications like missiles and radar systems.
China is the world’s leading producer of rare earths, with its mines producing 270,000 tons in 2024 – a figure which represented a majority of the world’s 390,000 tons mined and far outpaced U.S. production of 45,000 tons, according to a report by the U.S. Geological Survey (USGS).
Greenland, which is a semi-autonomous territory within the Kingdom of Denmark, has substantial reserves of critical minerals including gold, iron, copper, graphite, germanium and gallium. However, the development of those resources has been limited due to Greenland’s remote location and harsh climate, as well as environmental rules.
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The USGS analysis noted that in 2023 and 2024 there were zero tons of rare earths mined on the Arctic island. That untapped potential has contributed to the U.S. interest in the country, as well as that of geopolitical rivals like China and Russia.
The USGS also noted that Greenland has 1.5 million tons of reserves of rare earth minerals, which ranked eighth in the world among the countries analyzed in the agency’s report.
Countries with larger reserves of rare earth minerals include China (44 million tons), Brazil (21 million tons), India (6.9 million tons), Australia (5.7 million tons), Russia (3.8 million tons), Vietnam (3.5 million) and the U.S. (1.9 million tons).
The U.S. and Australia reached an $8.5 billion deal on the development of critical minerals in October.
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Two rare earth deposits in Greenland that are believed to be among the world’s largest, known as Kvanefjeld and Tanbreez, could be home to mines in the future.
During Trump’s first term in 2019, the U.S. and Greenland agreed to a memorandum of understanding to jointly survey the region’s mineral reserves and exchange technical knowledge to develop them – though the MOU is nearing its expiration, according to a CSIS report.
The CSIS noted that last year the U.S. Export-Import Bank sent a letter of interest to Critical Metals Corp. for a $120 million loan to fund the company’s Tanbreez rare earth mine, which would be the administration’s first overseas investment in a mining project if it’s approved.
Trump has recently ramped up his push to acquire Greenland, with the administration suggesting the U.S. could purchase the territory from Denmark, and the president himself saying the U.S. needs full control over Greenland or else China or Russia could take it over.
The president on Wednesday announced he will no longer move forward with tariffs on a group of European allies after he reached a deal with NATO’s leader on a framework for a future deal on Greenland.
Trump took to his Truth Social platform and said that, after a meeting with NATO Secretary General Mark Rutte, he is backing off imposing tariffs on several European countries that stood up for Greenland’s sovereignty amid Trump’s push to acquire the island.
“Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote.
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The governments of Greenland and Denmark have rejected Trump’s advances and have received support from other European countries that are also members of the NATO alliance. Denmark, Norway, Sweden, Finland, France, Germany, the United Kingdom and the Netherlands released a joint statement in solidarity with the territorial integrity and sovereignty of Greenland.
Trump countered by threatening to impose a 10% tariff on those countries beginning on Feb. 1, with the levy rising to 25% on June 1, until an agreement is reached for the purchase of Greenland.
In remarks on Wednesday at the World Economic Forum in Davos, Switzerland, Trump noted that the U.S. administered Greenland during World War II and gave it back to Denmark after hostilities. He also ruled out the use of military force to take over Greenland after previously suggesting that all options remained on the table.
“We never asked for anything,” Trump said of the U.S. working with NATO. “And we never got anything.”
Fox News Digital’s Emma Colton contributed to this report.
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