Donald Trump’s plan to secure mineral rights in Greenland is starting to close the door on China’s ambitions in the Arctic. After meeting with NATO Secretary-General Mark Rutte in Davos this week, Trump confirmed that the U.S. and its allies will now be part of a deal covering Greenland’s Golden Dome and rare earth mining access. His comments came during a CNBC interview, where he said, “They’re going to be involved in the Golden Dome, and they’re going to be involved in mineral rights, and so are we.” The full terms haven’t been made public yet. But according to White House spokeswoman Anna Kelly, “As details are finalized by all parties involved, they will be released accordingly.” Kelly also said that if this deal is completed, the U.S. will meet all its strategic goals regarding Greenland “at very little cost, forever.” U.S. targets China’s stake in rare earth projects China’s dominance over global rare earth supplies has long worried Washington. These metals are used in things like military weapons, wind turbines, and electronics. Last year, during a trade fight, China blocked exports to the U.S., making it clear they weren’t afraid to weaponize the supply chain. In 2018, Beijing even called itself a “near-Arctic state,” trying to justify a growing interest in the region. Trump has made building a rare earth supply chain in the West a key part of his industrial plan. The U.S. Geological Survey said in 2024 that Greenland holds around 1.5 million tons of rare earth reserves, ranking it eighth in the world. That includes the massive Kvanefjeld project in the south, which holds the third-largest land deposit of rare earths globally, according to the Center for Strategic and International Studies. The issue for China is that its foothold there is already shrinking. China’s Shenghe Resources is the second-largest investor in the project’s owner, Australia-based Energy Transition Minerals. But development froze in 2021 after Greenland banned uranium mining. The site is now stuck in legal battles. Ryan Castilloux, who leads rare earth research firm Adamas Intelligence, said if the U.S. locks in mineral access now, it could stop China (or anyone else) from coming back in to develop the resources later. There’s also the Tanbreez project, run by New York-based Critical Metals. The company says it could be one of the world’s biggest rare earth deposits. It got a letter of interest this month from the U.S. Export-Import Bank, which could give them $120 million in loans. After that news, their stock jumped 21% and has nearly tripled this year. The Biden administration had previously warned against selling the project to any China-linked firm, and Tanbreez CEO Greg Barnes told Reuters that the company decided not to go that route. Critical Metals ended up buying the project outright. Trump shifts the focus to security and Arctic dominance Despite the talk around rare earths, Trump said the U.S. isn’t in this for the mining. Speaking to reporters in Davos, he said bluntly, “I want Greenland for security. I don’t want it for anything else.” He added, “We have so much rare earth, we don’t know what to do with it. We don’t need it for anything else.” Castilloux backed that up, saying the U.S. supply pipeline is full for now. The Pentagon already has a deal with rare earth company MP Materials. That deal includes government investment, a price floor, and a contract to buy materials. So Greenland isn’t a short-term need, but that could change later. Still, Greenland is not an easy place to dig. Castilloux pointed out how far it is from most major infrastructure. The island’s population is tiny, so many of the workers would have to fly in. Shipping costs would be high too. And then there’s the ice. Trump didn’t sugarcoat it: “In terms of Greenland, you know, you have to go 25 feet down through ice to get it,” he said. “It’s not something that a lot of people are going to do or want to do.” He added, “No, this is security we’re talking about.” Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
