As Greenland’s ice melts, the world may uncover a rare earth solution to its climate woes. But will the island’s mining boom come at a cost?
Beneath Greenland’s Ice Lies a Climate Solution—and a New Geopolitical Battleground
A World of Rare Earth Elements
Rare earth elements are fundamental to daily life: These words you are reading on a screen are made of the ones and zeroes of binary code. But they’re also made of rare earth elements, such as the terbium in LED screens, praseodymium in batteries, and neodymium in a phone’s vibration unit.
Rare earth elements are a group of 17 metallic elements with unique properties.
They are essential for advanced technologies, including electronics, renewable energy systems, and military equipment.
The largest producers of rare earth elements are China, the United States, Australia, and Malaysia.
These elements are used in magnets, batteries, and phosphors, making them crucial for modern industries.
They are essential for advanced technologies, including electronics, renewable energy systems, and military equipment.
The demand for rare earth elements is increasing rapidly due to their unique properties.
China’s Dominance and Western Concerns
China now has a stranglehold on the market for rare earth elements, responsible for 70 percent of production globally. As the renewables revolution unfolds, and as more EVs hit the road, the world will demand ever more of these metals: Between 2020 and 2022, global demand increased by over 20%. The geopolitical pressure from China’s domination of the rare earths market has opened Greenland to exploration.
China has experienced rapid economic growth, becoming the world's second-largest economy.
Its GDP surpassed that of Japan in 2010 and the US in 2020.
China's Belt and Road Initiative (BRI) aims to expand its global influence through infrastructure development.
The country has made significant investments in technology, particularly in artificial intelligence, renewable energy, and e-commerce.
China's population is projected to reach 1.44 billion by 2030, maintaining its position as the world's most populous nation.
The Island’s Rich Deposits
Greenland contains 18 percent of the global reserves for neodymium, praseodymium, dysprosium, and terbium, according to the European Commission’s Joint Research Centre. Even a decade ago, scientists reported that the island could meet a quarter of the global demand for rare earths.
Greenland, an autonomous territory within the Kingdom of Denmark, is home to a vast and untouched natural reserve.
The Ilulissat Icefjord, a UNESCO World Heritage Site, covers over 40% of Greenland's national park area.
This reserve protects glaciers, fjords, and icebergs, providing a unique habitat for Arctic wildlife such as musk oxen, reindeer, and polar bears.
In fact, the Ilulissat Icefjord is responsible for producing nearly 20% of the world's fresh water.
The Greenland National Park, established in 1974, covers over 972,000 square kilometers, making it one of the largest national parks globally.
Mining Challenges
However, mining companies face significant challenges extracting rare earths from Greenland’s ice-free yet still frigid edges. An outfit would have to ship in all their equipment and build their own city at a remote mining site at considerable cost. On top of that, it would be difficult to actually hire enough workers from the island’s population of laborers, so a mining company may need to hire internationally and bring them in.
Environmental Concerns
Mining pollution is also a major concern: The accessible land along the island’s ice-free edges is also where humans live. As mining equipment and ships burn fossil fuels, they produce black carbon. When this settles on ice, it darkens the surface, which then absorbs more sunlight—“think of how much hotter you get wearing a black shirt than a white shirt on a summer day.”
A Win-Win for Greenlanders?
A win-win for Greenlanders would be to support mining but insist that it’s run on hydropower instead of fossil fuels. The island has huge potential for hydropower, and indeed has been approving more projects and expanding an existing facility. Still, no amount of hydropower can negate the impact of mining on the landscape.
A New Era of Mining
The growing demand and geopolitical fervor around rare earths may well make Greenland irresistible for mining companies, regardless of the logistical challenges. Western powers might get to the point where they intervene aggressively in the market. Subsidies would help make the industry more profitable—and palatable for investors.
The Future of Rare Earth Mining
Ton by ton, Greenland’s disappearing ice will reveal more of the mineral solutions to the world’s woes. As the global race to extract critical minerals for the clean energy transition heats up, Greenland is poised to play a major role in securing the future of modern life itself.
