Greenland has emerged as a region of growing geopolitical and economic interest because of its vast reserves of critical minerals and rare earth elements that are essential for modern technologies, including artificial intelligence hardware, semiconductors, electric vehicles, renewable energy systems, and defense equipment. Minerals such as neodymium, dysprosium, germanium, and gallium play a crucial role in high-performance chips, magnets, and data-center infrastructure.
Western nations, particularly the United States and Europe, are looking to reduce dependence on China, which currently dominates global mining and processing of rare earths. Greenland is seen as a potential alternative source, as it holds some of the world’s largest undeveloped reserves of rare earth elements and other strategic minerals.
Despite this potential, large-scale mining has not yet begun in Greenland. Only a small number of mines are currently operational, and most mineral projects remain in exploration or early planning stages. Development is slowed by major challenges, including Greenland’s harsh Arctic climate, limited transportation and energy infrastructure, high operational costs, and environmental concerns.
Building viable mining operations would require massive long-term investment in ports, roads, power generation, and skilled labor, with timelines that could stretch a decade or more. As global demand for AI-related technologies accelerates, Greenland’s resources are increasingly viewed as strategically important, but their future will depend on economic feasibility, environmental safeguards, and international cooperation.
