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Why Does Donald Trump want Greenland?

Greenland

Greenland
Greenland

American President-Elect Donald Trump has recently reignited discussions about U.S. acquisition of Greenland, stating on December 23, 2024, that “For purposes of national security and freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity.”

This bold assertion has sparked intense debate. But why is Donald Trump interested in Greenland, an autonomous territory of the Kingdom of Denmark?

I explain why Trump is interested in Greenland, and specifically a location called the Kvanefjeld deposit. I will also explain why it matters in the context of U.S. strategic competition with China and Russia.

What Are Rare Earth Minerals?

Rare Earth Elements (REEs) are a set of 17 chemical elements in the periodic table, specifically the lanthanides plus scandium and yttrium. Despite their name, these elements are relatively abundant but are termed “rare” due to their scattered distribution and the difficulty in extracting them economically.

  • Applications in Technology: REEs are integral to modern technology.
  • Electronics: They are crucial in the manufacture of computer chips due to their properties like high electrical conductivity, luminescence, and magnetism. For instance, neodymium and dysprosium are used in magnets that are essential for hard drives and microprocessors.
  • Consumer Products: They’re found in smartphones, TVs, and other electronics, particularly in components like touch screens, LEDs, and batteries.
  • Defense: Military applications include night vision goggles, precision-guided weapons, and radar systems, where elements like terbium and lutetium are used for their unique optical and magnetic properties.
  • Green Technology: For green energy solutions, elements like neodymium are used in wind turbine magnets, and lanthanum in battery technology for electric vehicles.
  • Strategic Importance: The control or access to these minerals can influence global power dynamics due to their critical role in advanced manufacturing and technology sectors. Given that China currently holds a dominant position in REE production and processing, securing alternative sources is a significant strategic concern for countries like the U.S.

The Significance of Kvanefjeld’s Mineral Deposits:

Kvanefjeld (or Kuannersuit), located in Greenland, is one of the world’s most significant multi-element deposits, particularly known for:

  • Rare Earth Elements (REEs) and Strategic Importance:
  • Diversification of Supply: The United States heavily relies on imports, predominantly from China, for rare earth elements which are crucial for high-tech, military, and green energy technologies (like electric vehicles, wind turbines, and military hardware). Kvanefjeld’s deposits could provide an alternative source, reducing dependency on China, which controls a significant portion of the global REE market.
  • National Security: REEs are vital for defense applications, including precision-guided munitions, stealth technology, and sonar systems. Access to Greenland’s resources could bolster America’s national security by ensuring a stable supply chain for these materials.

Geopolitical Dynamics:

  • Strategic Positioning: Greenland’s location in the Arctic makes it geopolitically significant. The U.S. has military interests in the region, including the Thule Air Base, which could be enhanced by closer ties with Greenland through mineral resource cooperation. This relationship could counterbalance the influence of China and Russia in the Arctic, where both nations are increasing their presence.
  • Countering Chinese Influence: There has been concern over Chinese investment in Greenland’s mineral resources, with companies like Shenghe Resources holding stakes in projects like Kvanefjeld. If the U.S. can secure or influence these resources, it might limit China’s leverage in the region.

Uranium and Nuclear Strategy:

  • Nuclear Energy and Weapons: Uranium is essential for both nuclear power and weapons. The Kvanefjeld deposit, being one of the largest, could serve as a strategic resource for nuclear energy or potential military applications, although mining has been contentious due to environmental and political reasons in Greenland.

Challenges and Motivations:

  • Environmental and Political Hurdles: The development of Kvanefjeld has faced significant opposition due to environmental concerns, particularly related to uranium mining, and political shifts within Greenland that have led to bans on uranium extraction. This complicates the direct exploitation of these resources by foreign entities.
  • Global Competition: Both China and Russia are actively involved in Arctic geopolitics, with interests in resources and shipping routes. Trump wants the U.S. to control Greenland’s resources, not these two competing superpowers.

Greenland’s History and Current Political Status:

  • Historical Context: Greenland is home to a native Inuit population. It was colonized by the Norse in the 10th century and later became part of Denmark-Norway. After Denmark’s separation from Norway in 1814, Greenland remained under Danish control. In 1953, Greenland’s colonial status ended, integrating it as a county within Denmark, granting its inhabitants Danish citizenship.
  • Path to Autonomy: In 1979, Greenland was granted home rule, which allowed for a local government to handle many internal affairs while still being part of the Kingdom of Denmark. This was further expanded in 2009 with the Self-Government Act, giving Greenland more autonomy in areas like judicial, policing, and natural resources, except for foreign policy, security, and monetary issues, which remain Danish responsibilities.
  • Current Political Status: Greenland is an autonomous country within the Kingdom of Denmark. It has its own parliament, the Inatsisartut, and government, the Naalakkersuisut. The push for independence is strong, with multiple political parties advocating for full sovereignty. However, economic dependency on Denmark, particularly through an annual grant, remains a significant factor in the debate about independence. Greenland also plays a role in international relations, participating in several global forums like the Arctic Council, while Denmark represents it in matters of foreign policy.

Outlook

Greenland flag
Greenland flag

The Kvanefjeld deposit could provide the U.S. with a strategic advantage by diversifying its supply of critical minerals, thus reducing reliance on potentially hostile nations. However, the actual realization of these benefits is contingent on overcoming environmental, political, and geopolitical challenges. This situation underscores the broader strategic competition in the Arctic, where minerals play a crucial role in international relations and security.

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Author

Alexandre Lores is a personal finance writer from Tampa Bay, Florida, with the goal to help one million people achieve financial freedom. He has spent over five years studying markets and economics, finding Bitcoin in 2017 and never turning back. He frequently appears on TV and in online news articles and is a regular Twitter spaces host.

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