Why Greenland isn't mining rare earths now

[Panoramic view of colorful Kulusuk village in East Greenland - Kulusuk, Greenland - Melting of a iceberg and pouring water into the sea]
murat4art/iStock via Getty Images

President Donald Trump’s renewed push to take control of Greenland has brought fresh attention to the Arctic island’s rare earth deposits, but industry experts say the challenges of mining there make it an impractical solution to America’s critical minerals problem.

“We are going to do something on Greenland whether they like it or not,” Trump declared Friday, as his administration continues efforts to break China’s dominance over global rare earth supplies.

However, Greenland’s 1.5 million tons of rare earth elements remain largely theoretical wealth. No company has advanced beyond the exploratory stage, and the obstacles are formidable.

INFRASTRUCTURE AND ENVIRONMENT PRESENT MAJOR HURDLES

The island’s remoteness poses the first significant challenge. According to Diogo Rosa, an economic geology researcher at the Geological Survey of Denmark and Greenland, even in populated southern areas, there are few roads and no railways. Any mining operation would need to build this infrastructure from scratch while also generating power locally and importing skilled labor.

Environmental concerns add another layer of complexity. Patrick Schröder, a senior fellow at Chatham House, noted that toxic chemicals needed to separate minerals from rock could prove highly polluting—a particular concern as Greenland develops its tourism industry. The presence of radioactive uranium alongside rare earth deposits compounds these risks.

GEOLOGICAL CHALLENGES COMPOUND THE PROBLEM

Beyond logistics, Greenland’s rare earths present a unique geological challenge. The elements are typically encased in eudialyte, a complex rock type that no one has ever profitably processed. This differs from the carbonatite formations found elsewhere, where proven extraction methods exist.

“If we’re in a race for resources — for critical minerals — then we should be focusing on the resources that are most easily able to get to market,” said David Abraham, a rare earths expert and author of “The Elements of Power.”

EXPERTS URGE FOCUS ON PROVEN PROJECTS

Many industry observers believe America would be better served by supporting existing operations rather than starting from scratch in Greenland.

“Everybody’s just been running to get to this endpoint. And if you go to Greenland, it’s like you’re going back to the beginning,” said Ian Lange, an economics professor at the Colorado School of Mines.

The U.S. has already invested in MP Materials (MP [https://seekingalpha.com/symbol/MP]), which operates the country’s only rare earths mine, along with lithium mining and battery recycling companies. Projects in Australia and other friendly nations are also further advanced.

Tracy Hughes, founder of the Critical Minerals Institute, offered a blunt assessment of the Greenland focus: “The fixation on Greenland has always been more about geopolitical posturing — a military-strategic interest and stock-promotion narrative — than a realistic supply solution for the tech sector. The hype far outstrips the hard science and economics behind these critical minerals.”

Trump himself acknowledged geopolitical motivations Friday, citing concerns about Russian and Chinese influence in the Arctic. Whether those strategic interests justify the mining hype remains an open question.

Other relevant stocks include (USAR [https://seekingalpha.com/symbol/USAR]), (TMC [https://seekingalpha.com/symbol/TMC]), (CRML [https://seekingalpha.com/symbol/CRML]), (UUUU [https://seekingalpha.com/symbol/UUUU]), (WWR [https://seekingalpha.com/symbol/WWR]), (UAMY [https://seekingalpha.com/symbol/UAMY]), (TMQ [https://seekingalpha.com/symbol/TMQ]), (LAC [https://seekingalpha.com/symbol/LAC]), (NMG [https://seekingalpha.com/symbol/NMG]), (NB [https://seekingalpha.com/symbol/NB]), (METC [https://seekingalpha.com/symbol/METC]), (UEC [https://seekingalpha.com/symbol/UEC]), (CCJ [https://seekingalpha.com/symbol/CCJ]), (DNN [https://seekingalpha.com/symbol/DNN]), (NXE [https://seekingalpha.com/symbol/NXE]), (LYSDY [https://seekingalpha.com/symbol/LYSDY]), (LYSCF [https://seekingalpha.com/symbol/LYSCF])

_Based on reporting by the Associated Press [https://seekingalpha.com/pr/20359795-greenland-s-harsh-environment-and-lack-of-infrastructure-have-prevented-rare-earth-mining]._

MORE ON MP MATERIALS

* MP Materials Is A Rare Earths Leader But Lacks Margin Of Safety At $60 [https://seekingalpha.com/article/4858393-mp-materials-is-a-rare-earths-leader-but-lacks-margin-of-safety-at-60]
* MP Materials' Bottom May Have Materialized - FQ4'25 Tailwinds Trigger Upgraded Buy Rating [https://seekingalpha.com/article/4856502-mp-materials-bottom-may-have-materialized-fq425-tailwinds-trigger-upgraded-buy-rating]
* MP Materials: Let's Not Get Ahead Of Ourselves Here Too Much [https://seekingalpha.com/article/4856408-mp-materials-lets-not-get-ahead-of-ourselves-here-too-much]
* MP Materials raised at Morgan Stanley on strategic importance to U.S. rare earth supply chain [https://seekingalpha.com/news/4529053-mp-materials-raised-at-morgan-stanley-on-strategic-importance-to-u-s-rare-earth-supply-chain]
* MP Materials jumps with BMO upgrading as 'U.S. rare earth champion' [https://seekingalpha.com/news/4525549-mp-materials-jumps-with-bmo-upgrading-as-us-rare-earth-champion]