Why Trump Wants Greenland: A Bid for Rare Earths, Oil, and Arctic Dominance

Donald Trump has renewed his push for the United States to take control of Greenland, framing the move as a strategic imperative for national security and a priority for its allies.

“We need it from the point of view of national security. It’s very strategic,” the former U.S. president explained aboard Air Force One. Trump added that “the European Union needs us to have it, and they know it,” fueling speculation he may intensify efforts to acquire the Danish territory.

Washington’s interest is driven by a dual focus: securing a pivotal geostrategic location and gaining access to a wealth of untapped natural resources. The melting Arctic is opening new commercial shipping lanes that major powers are eager to control, while Greenland remains a critical defense outpost against Russia, a role it has played since World War II.

While the U.S. has maintained military bases on the island for decades, Trump believes direct control is now essential. “Owning it is very important,” he said this week. “It gives you something that you can’t get just by signing a document.”

Pedro del Pozo, director of financial investments at Mutualidad, notes that the island’s value extends far beyond its resources. “The American interest in Greenland goes beyond its raw materials,” he said. “Its geostrategic value is enormous. Situated in a key position in the North Atlantic, it plays a fundamental role in NATO’s defense systems and in the Western security architecture.”

Del Pozo added, “During World War II, after the occupation of Denmark by German forces, the United States took positions in Greenland by establishing military bases. This presence has been maintained ever since, reinforced during the Cold War as part of the defense strategy against the Soviet Union.”

A Trove of Critical Minerals

Greenland’s second major draw is its vast reserves of rare earth elements, raw materials vital for current and future technology. The U.S. currently lags significantly behind its primary rival, China, in the production of these minerals.

“Greenland possesses one of the richest sources of resources in the world,” said Jonathan Paul, an associate professor of earth sciences at the University of London. “They include critical raw materials, such as lithium and rare earth elements, which are essential for green technology, and other minerals and metals, and a huge volume of hydrocarbons, like oil and gas.”

Paul highlighted the island’s unique geology as the source of this mineral diversity. “Geologically speaking, it is very unusual, and very exciting for geologists like me, that there is an area that has experienced together the three developments necessary to generate natural resources: mountain generation, crustal rifts, and volcanic activity,” he explained, noting that volcanic activity is responsible for the high concentration of rare earths.

According to Greenland’s Ministry of Mineral Resources, sediments indicating a high concentration of rare earths are found across the ice-free zones in the island’s south and along its west and east coasts.

The potential supply is immense. “It is estimated that Greenland has enough reserves under the ice of dysprosium and neodymium to satisfy more than a quarter of the world’s future demand,” Paul said.

Data from the RAND Corporation, based on U.S. Geological Survey figures, shows China produced approximately 240,000 metric tons of rare earth oxides in 2023. The United States, the world’s second-largest producer, reached just 43,000 tons.

Vast Oil Potential

Beyond minerals, Greenland may hold a gigantic quantity of oil. A 2007 report from the U.S. Geological Survey provided a staggering estimate, though it remains unproven.

The agency’s assessment concluded that “using a geology-based methodology, we estimate that the undiscovered amount of conventional oil in the Northeast Greenland province is 31,400 million barrels, approximately.”

To put that figure in perspective, it exceeds the total amount of oil produced by Norway since 1971, which stands between 20 and 30 billion barrels. It would also be enough to satisfy the entire planet’s current oil demand of about 102 million barrels per day for roughly 300 days.

However, these figures represent a geological estimate of potential resources, not proven reserves. The technical and economic feasibility of extracting this oil has not been confirmed, and the actual amount that could be profitably produced may differ significantly.

For the U.S., control of Greenland would address multiple strategic objectives simultaneously: securing a supply of future-critical raw materials to challenge China, tapping into new petroleum sources, and reinforcing its military defense in the increasingly vital Arctic region.