Greenland’s Rare Earth Metals: Strategic Reserves Amid Environmental and Political Challenges

Highlights

• Greenland has significant rare earth element reserves but no active mining due to voter priorities emphasizing environmental preservation.
• Local elections in 2021 banned uranium extraction and halted potential mining projects, despite global strategic interest.
• China dominates the rare earth market with 44 million tonnes of reserves, while Greenland’s resources remain unexploited.

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According to the U.S. Geological Survey (USGS), Greenland holds significant reserves of rare earth elements (REEs), estimated at 1.5 million tonnes. These deposits, including lithium and zirconium, are critical for producing electronics and batteries essential for the green energy transition. While these reserves place Greenland eighth globally, comparable to the United States’ 1.8 million tonnes, mining activities remain at a standstill.

Today, Anna Fleck, writing for Statista, reports (opens in a new tab) that the halt in rare earth extraction stems from the 2021 Greenlandic elections, where voters prioritized environmental preservation and cultural traditions over economic gains from mining. A particular concern was the radioactive uranium byproduct associated with rare earth mining, prompting a ban on uranium extraction. This decision reflects a broader trend: Greenland also ceased future oil and gas exploration in the same year.

Although Greenland previously sought Chinese investment to develop its mining sector, geopolitical and environmental factors, along with local resistance, have kept these projects dormant. The United States, at least indirectly, has worked behind the scenes to keep China out. Meanwhile, China maintains dominance in the rare earth market, with 44 million tonnes of reserves constituting nearly 40% of the global supply.

Greenland’s untapped resources underscore the tensions between economic opportunity, environmental conservation, and geopolitical strategy. These dynamics have drawn global interest, including from the U.S., whose leadership continues to view Greenland as a strategic asset for national security and resource development.  See below for a Statista-based graph.