Beyond Greenland: Trump's Arctic Framework Targets Mineral Rights to Counter China
The US president shifts from territorial acquisition to resource control, seeking access to rare earths that power everything from AI to electric vehicles. The EU has its own plans for Greenland's critical minerals.
President Donald Trump has expanded his Arctic ambitions beyond Greenland's borders, announcing a "framework" deal with NATO covering the "entire Arctic region" that centres on mineral rights and strategic resource control.
The announcement follows weeks of diplomatic pressure on Denmark, including threats of military force and tariffs. According to CNBC, Trump told reporters at Davos: "They're going to be involved in the Golden Dome, and they're going to be involved in mineral rights, and so are we."
The Resource Play
The shift from outright territorial acquisition to mineral rights access reflects the real strategic calculus behind the Greenland push. The proposed framework would restrict non-NATO countries, particularly Russia and China, from obtaining rights to mine the rare earth minerals that lie deep under Greenland's ice sheet, according to the New York Times.
Greenland holds an estimated 1.5 million tonnes of rare earth reserves, ranking eighth globally according to the US Geological Survey. Two deposits known as Kvanefjeld and Tanbreez are believed to be among the world's largest. In 2023 and 2024, zero tonnes of rare earths were mined on the Arctic island. That untapped potential has driven American interest.
The island holds 25 of the 34 raw materials the EU defines as critical. For European automotive and wind turbine manufacturers, Greenland represents the only realistic source of rare earths that can be transported safely and is not controlled by China.
China's Dominance
The framework aims to counter China's stranglehold on the rare earth supply chain. Beijing controls roughly 60 to 70 per cent of global mining and up to 90 per cent of processing capacity, according to Fox Business. The European Commission reports that the EU imports 95 per cent of its rare earth materials, with China providing 100 per cent of heavy rare earth elements.
In response to US tariffs, China introduced export controls on rare earth elements in April and October 2025, citing national security interests. The second wave has been suspended until November 2026. European Central Bank economists have estimated that over 80 per cent of large European firms are no more than three intermediaries away from a Chinese rare earth producer.
Greenland's 38.5 million tonnes of reserves carry significant strategic value when compared to China's 90 million tonnes, the United States' 10 million, and Europe's mere 3 million.
Europe's Own Response
The EU has not been idle. The European Critical Raw Materials Act, adopted in March 2024, sets yearly benchmarks for domestic extraction and limits dependence on any single third country to 65 per cent of annual consumption. By 2030, the bloc aims to extract at least 10 per cent of its consumption domestically and process at least 40 per cent within EU borders.
The RESourceEU initiative aims to mobilise around 3 billion euros for mature projects starting by 2029. One flagship project is the Malmbjerg molybdenum mine in Greenland, which could supply 25 per cent of EU overall molybdenum consumption and 100 per cent of EU defence consumption.
In March 2025, the EU selected 47 strategic projects to benefit from streamlined permitting, with a second selection round taking place this month.
Greenland's Red Lines
Greenlandic Prime Minister Jens-Frederik Nielsen said Thursday that the terms of the framework remain unclear. According to The Hill, he stated: "We have said from the beginning in Greenland, we have some red lines. We cannot cross the red lines. We have to respect our territorial integrity. We have to respect international law."
Aaja Chemnitz, one of two Greenlandic members of the Danish parliament, called Trump's deal announcement "completely absurd," saying "Nothing about us, without us."
This echoes earlier unified statements from all five Greenlandic political parties declaring they want to be neither American nor Danish, but Greenlandic.
The Sovereignty Question
The framework does not include transfer of overall sovereignty from Denmark to the United States. Two sources told media outlets the arrangement could resemble the United Kingdom's bases on Cyprus, which are regarded as sovereign British territory while Cyprus retains overall sovereignty.
Denmark, Norway, Sweden, Finland, France, Germany, the United Kingdom and the Netherlands released a joint statement in solidarity with Greenland's territorial integrity. Only Hungary, under Viktor Orban, blocked an EU joint statement on the matter.
As European nations prepare for Arctic contingencies, the minerals beneath the ice have become the real prize. Trump may have dropped his demands for outright annexation, but the resource race is just beginning.
January 23, 2026