03-05-2025
- Business
- The Herald Scotland
Why Greenland's mineral resources are critical to Trump administration
While the island's role in the U.S.'s national and international security remains important, its vast mineral wealth - resources critical to modern industries where China holds near-monopoly power - has become a key driver of U.S. interest.
In April, Trump signed two executive orders aimed at securing critical minerals: one investigating the need for tariffs on mineral imports and another accelerating offshore mining.
The island in the Arctic, which is an autonomous territory of Denmark, has been of interest to Trump before. In 2019, during Trump's first term as president, he expressed interest in buying Greenland.
What makes Greenland's minerals significant?
Though ice covers about 80% of the island, its ice-free zone encompasses about 250,000 square miles and hosts many mineral deposits, including over 30 critical raw minerals, according to a 2023 report from the Geological Survey of Denmark and Greenland.
Some of the most notable include graphite, copper, nickel, zinc, tungsten and lithium - essential industrial minerals for making modern technologies.
"It's a treasure," Anne Merrild, a professor and head of the Sustainability and Planning Department at Denmark's Aalborg University, described the island she grew up on. Besides the security issue and potential for Greenland to become a transit point for trade and military interactions, Merrild points to its rich mineral resources as a major reason why Trump is so interested in the island.
"I don't expect it to be the need for minerals that drives this interest, but rather the opportunity to control who else has access to the resources," Merrild said.
While the United States was once a leading mineral supplier, China now dominates the global market. By controlling access to the potential mineral resources in Greenland, the Trump administration sought to prevent its geopolitical rivals, like China, from tightening its grip on global supply chains.
What are critical minerals?
The Energy Act of 2020 defines a "critical mineral" as a non-fuel mineral essential to U.S. economic or national security, with a supply chain susceptible to disruption.
These minerals are vital for manufacturing products, renewable energy development and infrastructure. They are key components for producing everything from smartphones, computers, and electric vehicle batteries to wind turbines, solar panels, and advanced military systems.
The United States Geological Survey published a list of 50 critical minerals in 2022. In an executive order published April 15, the White House added uranium to the list of critical minerals. Though not formally designated critical, the White House prioritized offshore mining of copper, potash and gold in an April 24 executive order.
From mining to processing, China dominates today's global critical mineral market. Based on a report from the USGS published earlier this year, China was the top producer of 30 critical minerals in 2024, and the U.S. relies heavily on mineral imports from China and Canada.
What's the status of mining in Greenland right now?
Merrild said there's "almost no mining activity" in Greenland for critical minerals right now due to challenges like harsh weather, limited workforce and high costs of transportation and infrastructure, making it "really an untapped resource."
Tapping into Greenland's rich resources would require big companies with the financial capacity to invest in the initial exploration phase. "If they do so," Merrild said. "I think it could contribute significantly to the Greenlandic economy, and it could be really good for developing the infrastructure around the mines."
But Merrild emphasizes the importance of development with "care" as mining activities could "potentially cause significant negative impact" to the people and the environment.
"It would be really sad if Greenland was sacrificed for the sake of its mineral resources to other parts of the world," Merrild said.
Read more: Why Trump wants Greenland: Military security, rare minerals, trade routes, for starters
What do Greenlanders think?
Greenland is about three times the size of Texas but has a population of just 56,000 - about the same as Carson City, Nevada.
Most of its residents don't want their land to be a part of the United States, according to a poll in January. Eighty-five percent of Greenlanders rejected becoming Americans, while 6% said yes. The rest were undecided.
Merrild, whose parents and siblings are living in Greenland, expressed concerns about an unknown political issue. Merrild said her parents are considering moving to Denmark because "they're afraid of what will happen if the United States takes over Greenland, if they will have the same rights, and so on."
