Greenland: Key axis in the race for critical minerals and the energy transition

European countries and the United States are stepping up efforts to reduce their dependence on China for these resources. Greenlanders want to exploit the resources, but they have enacted strict rules to protect the environment.

Greenland is home to some of the largest untapped rare earth deposits in the world. They are important elements for the manufacture of electric vehicles, powerful magnets, advanced fighter jets, submarines, smartphones, television screens, and many other products. China’s dominance over critical minerals in global supply chains became a powerful bargaining chip in recent trade talks between Beijing and Washington. U.S. Treasury Secretary Scott Bessent announced last week that the two countries had reached an agreement to ease the process of shipping rare earths to the United States. Therefore, Greenland’s deposits are seen as an alternative that could reduce Chinese dominance. Eldur Olafsson, chief executive of Amaroq Minerals Ltd., Greenland’s largest miner, says the company has recently raised about 52 million euros from European and U.S. investors, and is in talks with some EU and U.S. government agencies. “When you operate in Greenland, it’s important to look for investors, because geopolitically it’s also important to have the support of Europe, Denmark, Iceland, the Nordics, I like to say, and the United States,” says Olafsson, whose company operates a newly opened gold mine in southern Greenland.

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