Greenland earmarked for new minerals project as US eyes island

Independent

3 days ago

The European Union has announced Greenland will be among the nations selected for 13 new raw material projects, which are designed to bolster its supply of critical metals and minerals.
The initiative, which includes nations outside the bloc, aims to ensure the EU remains competitive in key sectors such as energy transition, defence, and aerospace.
The announcement follows China 's decision in April to impose export restrictions on rare earth magnets, requiring new licenses for export. This move has prompted European diplomats, car manufacturers, and other businesses to urgently seek meetings with Beijing officials to avoid potential factory closures.
European Commissioner for industry, Stephane Sejourne, stated, "We must reduce our dependencies on all countries, particularly on a number of countries like China... The export bans increase our will to diversify."
China currently controls more than 90 per cent of the global processing capacity for these magnets, which are essential components in a wide range of products from vehicles and fighter jets to household appliances.
Additionally, China is the primary supplier of many key components for renewable energy technologies, including rare earth minerals, batteries, and solar panels. Brussels is eager to change this dynamic to secure its supply chains.
The EU list is part of the implementation of the Critical Raw Material Act agreed in 2023 under which the bloc aims to mine 10 per cent, process 40 per cent and recycle 25 per cent of its needs by 2030.
Ten of the new projects will be focused on materials essential for electric vehicle batteries and battery storage, including lithium, cobalt, manganese and graphite. Two projects for rare earths are located in Malawi and South Africa.
Other projects are located in Britain, Canada, Greenland, Kazakhstan, Madagascar, Norway, Serbia, Ukraine, Zambia, Brazil and the French territory of New Caledonia.
The British project is to extract tungsten and the ones in Ukraine and Greenland will be for graphite, with the project in Greenland run by GreenRoc Strategic Materials GROC.L. Tungsten is key for the defence industry.
Greenland has been a point of tension between Brussels and Washington this year after US President Donald Trump repeatedly said he wants to acquire the Danish overseas territory.
US officials have discussed a plan to pull Greenland into America's sphere of influence with a type of agreement called COFA that the United States has used to maintain close ties with several Pacific Island nations.
Under COFA, the US government offers essential services and in exchange, the US military operates freely while trade with the US is largely duty-free.
The Serbian project, run by major miner Rio Tinto, could produce 90 per cent of Europe's lithium needs. However, the project nearly fell apart after the government revoked the miner's licence in 2022. A Serbian court restored Rio Tinto's rights last year. Many Serbs oppose the Jadar project, saying its development will damage the environment.
"With an estimated production of 58,000 tons of lithium carbonate annually, Serbia has the potential to become a key player in the electric vehicle supply chain," Rio Tinto said in a statement.
The EU has estimated that the projects would need an overall capital investment of 5.5 billion euros ($6.3 billion) to get off the ground. They would receive coordinated financial support and buyer interest from the European Commission, member states and lenders.
The new list brings the EU's total number of strategic projects to 60. In March, the Commission announced 47 projects within the EU.