U.S. Faces Setbacks in Greenland’s Rare Earth Race

Greenland’s rare earth reserves, estimated at 1.5 million metric tons and including 25 of the 34 minerals deemed critical by the European Commission, have drawn intense global interest.

However, the U.S. has faced setbacks in its pursuit, notably with the Tanbreez project, one of Greenland’s largest rare earth deposits. In 2024, U.S. and Danish officials lobbied Tanbreez Mining not to sell to Chinese-linked firms, resulting in its acquisition by New York-based Critical Metals for $5 million cash and $211 million in stock, a deal significantly lower than Chinese offers.

Despite this, the project’s complex mineralogy and low ore concentration (1-6%) make commercial production unlikely before 2026, according to Project Blue’s David Merriman.

Greenland’s stringent environmental regulations, including a 2021 uranium mining ban, further complicate U.S. efforts, as seen in the stalled Kvanefjeld project, where Australian firm Energy Transition Minerals faces an $11.5 billion lawsuit after its license was revoked.

ALSO READ | Putin’s Pipeline Power Grab: Russia Secures Control Over Congo’s Energy Future

EU and China Outpace U.S. with Strategic Moves

While the U.S. struggles, the EU has forged ahead with a 2023 mining agreement with Greenland, followed by a Danish-French consortium securing a 30-year anorthosite mining permit in 2025, aligning with the EU’s Green Deal to diversify supply chains away from China’s 70% control of rare earth production.

China, meanwhile, maintains a foothold through Shenghe Resources’ 11.3% stake in the Kvanefjeld project, despite local opposition to uranium byproducts.

Greenland’s government, led by the Inuit Ataqatigiit party, prioritizes sustainable mining, giving an edge to partners like the EU that align with these standards.

The U.S.’s aggressive rhetoric, including President Trump’s calls to acquire Greenland, has strained relations, with Greenland’s Prime Minister Mute Egede firmly stating, “Greenland is not for sale.”

The statement has limited U.S. influence compared to the EU’s diplomatic approach and China’s persistent investments.

Did you know?
Greenland’s Tanbreez project, acquired by Critical Metals in 2024, contains over 27% heavy rare earth elements, making it one of the largest untapped deposits outside China, with a projected net present value of $3.04 billion.

Lack of U.S. Processing Infrastructure Hinders Progress

Beyond securing mining rights, the U.S. faces a critical bottleneck in rare earth processing, with only one operational facility, MP Materials’ Mountain Pass mine, handling a fraction of global demand.

A 2025 Department of Energy report highlighted that the U.S. processes less than 5% of the world’s rare earths, compared to China’s 87%, forcing reliance on foreign refineries. Greenland’s complex deposits, rich in heavy rare earths like dysprosium, require advanced separation technologies that U.S. firms are still developing.

In contrast, the EU has invested €2 billion in 2025 to build processing plants in Scandinavia, while China’s established infrastructure gives it a competitive edge. “Without domestic processing, U.S. control over Greenland’s minerals is incomplete,” said Dr. Laura Kim, a supply chain expert at the 2025 Critical Minerals Summit.

Strategic Implications for U.S. National Security

Greenland’s rare earths are vital for U.S. defense applications, including F-35 jets and missile guidance systems, making the nation’s lag in the race a national security concern.

The Pentagon’s 2025 Critical Minerals Strategy emphasizes securing supply chains, but delays in Greenland projects, like Tanbreez, expose vulnerabilities.

The EU’s partnerships, backed by France’s Orano Group, ensure a steady supply for European defense and clean energy sectors, while China’s dominance threatens to limit U.S. access.

A January 2025 congressional report warned that failure to secure Greenland’s resources could weaken U.S. technological leadership. Collaborative efforts with allies like Canada, which invested $400 million in Greenland’s exploration in 2024, may be key to closing the gap.