Mining industry stands to win from Trump Arctic interests

Greenland, largely covered by ice, holds significant reserves of critical minerals, graphite, lithium, and cobalt – key materials for clean energy and advanced technologies.

Rare earths, like neodymium and dysprosium, are vital for electric motors and wind turbines.

Graphite, key for batteries and fuel cells, is dominated by China's reserves, while lithium powers everything from smartphones to renewable energy storage.

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As the energy transition accelerates, demand for these materials is skyrocketing.

Projections estimate a 25-fold increase in graphite demand alone by 2040 due to the growing electric vehicle market.

Greenland’s known graphite reserves exceed this projected need, making it a key player in securing future supplies.

Securing the high ground

For Trump, the proposition of buying Greenland was more than a “real estate deal.”

It is a calculated move to secure access to these resources and reduce US reliance on China, which dominates global supply chains for rare earths and critical minerals.

Currently, the US sources 42% of its rare earth imports and nearly 100% of its natural graphite from China.

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Musk, on the other hand, sees Greenland through the lens of supply chain resilience for Tesla and SpaceX.

Both companies rely heavily on stable and ethical sources of critical materials, especially as Tesla scales up electric vehicle production and SpaceX drives innovations in satellite technology.

Greenland’s mineral deposits offer a way to diversify supply chains, lower geopolitical risks, and potentially cut costs by bringing raw materials closer to North American markets.

Accelerated development

While Greenland’s untapped resources hold promise, the mining landscape is harsh and challenging.

Frigid Arctic conditions, limited infrastructure, and environmental sensitivities make extraction efforts complex and expensive.

The costs of exploration and development are higher than in established mining regions, requiring significant upfront investment in new mining methods and long-term vision.

However, the melting ice caused by climate change has extended shipping windows and exposed previously inaccessible deposits, opening new opportunities.

Governments and private investors alike are stepping in to address these challenges.

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The US reopened a consulate in Nuuk in 2020 and launched initiatives to support commercial ventures, while the European Union has pledged millions toward Greenland's mining infrastructure.

For mining companies, partnering with Greenland’s pro-mining government offers a strategic advantage.

The island’s relative political stability, alignment with Western values, and untapped reserves make it a more reliable partner than other resource-rich regions with volatile regulatory or political climates.

Complex partnership environment

Greenland’s pristine environment and local opposition to uranium mining add layers of complexity to project development.

Mining companies must navigate strict environmental, social, and governance (ESG) standards to gain approval and avoid reputational risks.

However, studies show that most Greenlanders support non-uranium mining, seeing it as a path to economic independence from Denmark.

In a world where access to critical minerals defines economic and technological competitiveness, Greenland is the Arctic frontier that could shape the next decade of mining.

For those in the industry, the race is on to navigate its challenges and unlock its potential before the window of opportunity freezes over – literally and figuratively.