US strategic interest in Greenland

It’s all about the minerals

Greenland, which was once a remote and economically marginal part of the world, has transformed remarkably in the 21^st century. When the USA declared it wanted to take it for its national and strategic security in 2025, its significance further increased.

The detention of the Venezuelan president, the renaming of the Gulf of Mexico as the Gulf of America was followed by growing strategic interest in Greenland. The US National Security Strategy further asserts that no foreign power will be permitted to exert influence in the Western Hemisphere. The question however arises how the frozen Greenland has become a focal point of the new cold war.

The answer is simple, that the matter is not about ice but about the rare earth ores under it. The story of the Middle East in the 20^th century is that it was not strategically significant because of its deserts, but because of its vast oil reserves.  Similarly, Greenland has become strategically important for all major powers because of the rare earth ores, not for its ice.

Geographically Greenland is situated between North America and Europe along the Arctic Ocean. Politically, it is a self-governing territory of the Kingdom of Denmark. Greenland has emerged as a contested space, with major powers competing for influence over its resources. Although much of the island is covered by ice, approximately 20 percent of its land remains ice-free. Interestingly, In the era of green technology, territorial control has become strategically significant, particularly a land which possess large reserves of rare earth elements (REEs). Geologically, under the ice there are three key processes: mountain building, tectonic rifting, and volcanic activity. In volcanic zones, hydrothermal fluids have led to the formation of particularly valuable rare earth elements, including niobium, tantalum, and ytterbium. The recent survey conducted by the US Geological Survey, discovered that northeastern Greenland alone may contain deposits equivalent to approximately 31 billion barrels of oil in economic value. Furthermore, Beneath Greenland’s ice sheet lie three major deposits of rare earth elements, which are critical for producing batteries and electronic components used in clean energy technologies. The resources of Greenland are enough to supply more than 25 percent of future global demand. Furthermore, polar ice melting and the resulting opening of new Arctic shipping lanes enhance their importance for the major power. Due to transitional energy shifts from non-renewable to renewable energy, China’s shifting its focus toward Taiwan, and Russia’s war in Ukraine, it extends beyond territorial control and reflects deeper competition over strategic resources. Similarly, the USA is increasingly focusing on Greenland to sustain its dominance amid the global shift towards technological and renewable energy.

China has extended its Belt and Road Initiative (BRI) into the Arctic by launching the “Polar Silk Road” in 2018, aiming to reduce its dependence on traditional maritime chokepoints such as the Suez Canal. Similarly, Europe and NATO have primarily relied on military measures to monitor and counter Russia’s activities. Meanwhile, in Russian eyes, the Arctic Sea is a major corridor for the northern sea route and is a buffer zone against the NATO forces.

To oppose the Chinese policy, the president of the USA has repeatedly asserted that the USA “needs” Greenland for international and national security, framing the territory as essential to countering Russian and Chinese presence in the region rather than simply as an ice-covered island.

Greenland is a symbol of climate change, emerging technology, and great power rivalry that are redesigning global order. For the USA, it is a gateway to technological leadership, mineral security, and Arctic dominance. Similarly, it creates opportunities and challenges for Russia and China. This shows that the era of a new cold war will not be based on conventional warfare, but there will be hybrid warfare. In this contemporary era, in which major powers work to unlock the Arctic frozen frontier to reach the minerals buried beneath its ice.

Both Denmark and Greenland opposed this, saying that the territory will not be sold or annexed. Still, the shift in US policy towards Arctic geostrategic competition reflects that it wants to counter Russian and Chinese influence in the region. The ‘Donroe Doctrine’ has surprised the academic circles, which wonder why Greenland holds strategic importance for the USA.

First it recalls the Monroe Doctrine of 1823 which emphasized that every state should refrain from exerting influence in the Western Hemisphere and prevent their external powers first. Secondly, the USA will reduce its dependence on China for critical rare earth minerals to advance its own technologies. Third, the GIUK (Greenland–Iceland–United Kingdom) gap in the Arctic has become a crucial strategic zone that the USA seeks to monitor for both national and international security concerns. Finally, Greenland contains substantial fresh water reserves, which the USA wants to secure. Collectively these factors also attract all major powers towards Greenland, which has become a focal point for great powers in the 21^st century.

The idea of taking over Greenland originated in 2018, when a friend of the US President suggested that it would be the best deal of the 21^st century. Since then, private investors formed a company in Greenland named Kobold Metals. Private investors have also launched an AI-based urban project called Praxis. The main goal of private investors was to use AI to detect critical minerals in Greenland. Meanwhile, they acquired Lake Tasersiaq to develop a hydropower project to meet Greenland’s energy needs. In 2026, after the announcement about acquiring Greenland, the share price of Critical Metals Corp (CMC) rose because the company holds mining rights to Tanbreez, the world’s largest rare-earth deposit. Although this appears theoretically complex, the connection between power and money exists everywhere, as the world is driven by power, and power is largely derived from wealth.

Fareed Zakaria:

“A new world order is emerging, but it is not clear what form it will take”

Greenland is a symbol of climate change, emerging technology, and great power rivalry that are redesigning global order. For the USA, it is a gateway to technological leadership, mineral security, and Arctic dominance. Similarly, it creates opportunities and challenges for Russia and China. This shows that the era of a new cold war will not be based on conventional warfare, but there will be hybrid warfare. In this contemporary era, in which major powers work to unlock the Arctic frozen frontier to reach the minerals buried beneath its ice.