Geological Dream

Greenland’s vast icy landscapes hold more than just breathtaking beauty—they conceal a wealth of untapped mineral resources that could redefine the island’s future and shift global dynamics. As the world races towards green technologies and seeks secure sources of critical minerals, Greenland’s mining sector emerges as a beacon of opportunity, offering not only economic revitalization but also a potential path towards true financial independence from Denmark. International investors, including prominent figures like Jeff Bezos, Michael Bloomberg, and Bill Gates, are backing ventures that explore the island’s resource potential and companies like KoBold Metals are employing AI to identify deposits of critical minerals. Their involvement underscores Greenland’s potential to become a critical hub for the transition to green technologies, securing essential resources in an ever-competitive world.

It all began in 1850 with the discovery of cryolite, a mineral essential for producing sodium bicarbonate and aluminum. This marked the first glimpse into Greenland’s mining potential. Fast forward to today, and that potential has expanded dramatically. The island’s largely unexplored underground riches now include substantial reserves of rare earth elements: copper, nickel, cobalt, and a myriad of other critical minerals vital to modern technology. A 2023 survey unveiled that Greenland harbors 25 of the 34 minerals classified as “critical raw materials” by the European Commission (Reuters, 2025), and notably, three of the world’s largest rare earth deposits are located in the southern province of Gardar. These rare earth elements—17 essential metals—are the backbone of contemporary innovations. They’re crucial for the permanent magnets in electric vehicles, the turbines in wind farms, and key components in military equipment. As we pivot from fossil fuels to mineral-intensive energy systems, the demand for these minerals is projected to nearly double by 2050 (ICMM, 2025).

These rare earth elements—17 essential metals—are the backbone of contemporary innovations. As we pivot from fossil fuels to mineral-intensive energy systems, the demand for these minerals is projected to nearly double by 2050.

Yet, there’s a pressing challenge: China currently supplies over 95% of the global rare earth elements, effectively controlling world prices. Greenland’s estimated reserves of 1.5 million tons of rare earth elements could meet at least 25% of global demand for years to come (Institute For Energy Research, 2025). While this is modest compared to China’s dominant 44 million tons, it’s a significant step towards diversifying supply chains and reducing global dependency on a single nation.

But it’s not just about rare earths. Beneath Greenland’s coastal waters lies another treasure trove: oil and gas. A U.S. Geological Survey estimated that offshore wells could contain up to 52 billion barrels of oil—about 3% of the world’s proven reserves and that overall it holds roughly 13% of the world’s undiscovered oil and an impressive 30% of its untapped natural gas (Next Big Future, 2025). However, despite these staggering figures, Greenland currently bans the extraction of oil and natural gas, reflecting a deliberate choice to prioritize environmental concerns over immediate economic gains.

Even so, developing Greenland’s mining sector is no easy feat. The island’s extreme Arctic climate poses substantial challenges. Temperatures can plunge to severe lows, fierce winds whip across the terrain, and ice can block transportation routes. With less than 100 miles of paved roads connecting its scattered communities, Greenland relies heavily on air and sea transport—avenues often hindered by harsh weather and ice. These conditions make exploration and development high-risk and costly endeavors. Statistics suggest that only 1 in 100 mining projects becomes operational, with timelines stretching up to a decade from discovery to production (HAL Open Science, 2024). Moreover, Greenland’s small population—fewer than 100,000 inhabitants—means a limited local workforce. Success hinges on collaborating with local communities, tapping into their deep knowledge of the land and environment. 
Beyond mining, Greenland offers strategic advantages in other sectors. The island’s abundant hydroelectric energy—estimated at around 20,000 GWh—and cold climate make it an attractive location for data centers, where natural cooling can significantly reduce energy costs. Additionally, Greenland’s geographic position is becoming increasingly significant. Furthermore, new shipping routes are emerging, positioning the island as a crucial node for international trade. This opens up prospects for growth in logistics and digital infrastructure, further diversifying the economy and enhancing the nation’s potential for an independent development.

A New Strategic Epicenter 

In recent years, Greenland has emerged as a strategic epicenter for new global trade routes, positioning itself at the heart of competition among Europe, the United States, Canada, China, and Russia. The unveiling of previously inaccessible Arctic navigation pathways is radically transforming international transportation corridors. By reducing time and costs between Asia, Europe, and North America, these new routes are granting Greenland unprecedented importance on the world stage.

The modernization of the port of Nuuk exemplifies this transformative shift. With infrastructural upgrades and increased operational capacity, the island’s role as a logistical hub in the Arctic has been significantly strengthened. The numbers are compelling: maritime traffic around Greenland surged from 315 ships in 2014 to 693 in 2023—an increase of 120% (Pulitzer Center, 2025). Similarly, within the Arctic Polar Code area, there was a 37% rise in traffic between 2013 and 2023. These figures highlight a growing interest in alternative routes that, on certain paths, can save up to 10-15 days of navigation compared to the traditional route through the Suez Canal.

One of the principal routes reshaping global shipping is the Northern Sea Route (NSR), heavily promoted by Russia. Moscow has invested in a fleet of 40 icebreakers and new port infrastructures along its northern coast, creating a direct connection between Europe and Asia. This passage is becoming an increasingly competitive alternative for international trade. Alongside the NSR, the Northwest Passage (NWP), traversing Canadian waters, offers a direct link between Asia and the east coast of North America. Despite challenges related to navigation conditions and still-developing infrastructure, its proximity to Greenland makes the island crucial for monitoring and managing maritime traffic.

Another intriguing prospect is the Transpolar Sea Route (TSR), which could, in the future, directly connect the Atlantic and Pacific Oceans through the heart of the Arctic—offering the shortest possible path between the two oceans. Although currently impractical due to harsh navigation conditions, the possibility of it becoming accessible underscores the region’s potential to revolutionize international trade.

Greenland’s Strategic Position in the Arctic

Source: CFR

The surge in maritime traffic and the development of port infrastructures are not merely indicators of economic opportunities but signals of a shift that could redefine the balance of global commerce. The current geopolitical landscape is intensely competitive. The United States considers Greenland essential for national security, with former President Trump declaring, “We need Greenland for economic security,” emphasizing how control over these routes and infrastructures is strategic in countering Russian and Chinese influence in the region. Indeed, Russia has intensified its investments in Arctic infrastructure, while China, through its “Polar Silk Road,” seeks to expand its presence despite not having direct access to the Arctic Ocean.

Moreover, Greenland’s role extends beyond cargo transport. Control of Arctic routes offers advantages in military security and strategic monitoring—key elements in an era where great-power competition extends to dominance over maritime pathways. Its geographical proximity to the GIUK Gap—a critical juncture connecting Greenland, Iceland, and the United Kingdom—confers strategic advantages in both military and commercial spheres. This facilitates trade and investments that can contribute to substantial economic growth.

If Greenland can capitalize on these opportunities through targeted investments and efficient management, it may not only bolster its economy but also assume a decisive role in geopolitical competition. By helping to redefine international trade routes, Greenland could ensure the security and prosperity of the entire region. Yet it’s worth noting that both these elements have long been present on the island. So, why is this attention arising just now?