Days after President Trump announced a security agreement with Greenland and Denmark, Greenland Mines applied to double the size of its rare earth mine in Greenland to supply magnet metals needed for electric vehicles, wind turbines, and defense systems. If approved, the North Carolina-based company’s Sarfartoq rare earth district in southwest Greenland would expand from 74 square miles to about 175 square miles. Greenland Mines closed a deal for the Sarfartoq Rare Earths Project in southwest Greenland on September 1— just 17 days before President Trump’s new Greenland security deal was announced. President Trump and the leaders of Greenland and Denmark signed the agreement on September 22 that permits a larger U.S. military presence on Greenland — a strategically located, mineral-rich island roughly 3 times as large as Texas.
According to the text of the security agreement, the United States can establish a “Golden Dome” defense system in Greenland as a shield against ballistic missile threats. President Trump said the agreement gives the US “permanent control over security and all other needs on that territory.” “No U.S. adversary will ever be permitted to establish a military presence in Greenland anymore, or make sensitive investments there without our express written approval,” President Trump said. The shortest route from Europe to North America runs via the Arctic island, home to the northernmost U.S. military base. Danish Prime Minister Mette Frederiksen described the agreement as a deal that can “last forever” and said it underlines the importance of the NATO alliance and respects Greenland’s right to self-determination.
Greenland Mines is developing a rare earth neodymium and praseodymium project that could reduce the Western Hemisphere’s dependence on China for magnet rare earth minerals. China-based processors control at least 75% of the global market for all rare earth elements. The Greenland Mines project is expected to produce about one-third of the world’s neodymium-praseodymium oxide refined outside of China, serving as a major source of the rare earths needed for energy, transportation, and defense technologies. The project is estimated to be worth $2.05 billion.
China’s export restrictions on rare earths have driven prices up in the past year. China is the world’s dominant rare earths miner and refiner and last year agreed to delay export restrictions until November 10. Rare earths are likely to be discussed in President Trump’s meeting with China’s President Xi in Washington, D.C., with a potential extension of those export delays. The Trump administration had set January 2027 as a deadline to block imports of Chinese rare earths, but that goal is not likely to be met.
Under President Trump, rare earths are a national security priority. The Trump administration has supported and invested in domestic rare earth operations. It has spent billions of dollars on several companies to build a U.S. industry, including MP Materials, USA Rare Earth, and Energy Fuels. Since President Trump returned to office last year, U.S. output of the two most-commonly used rare earths has more than tripled, but the country can meet only 42% of its demand. And, in five years, the United States is still expected to rely on imports for nearly a quarter of its demand.
Rare earths, which are among the 60 minerals considered critical by the U.S. government, must be processed before they are turned into magnets and other materials used to make weapons, automobiles, computers and other goods. The United States currently processes little of the heavy rare earths used in military applications, although its output of those minerals should increase by 2031. Rare earths processing is complex due to the chemical and mechanical difficulties of separating the 17 rare earths from each other.
U.S. rare earths companies are growing. Earlier this month, MP Materials began delivering magnets made from its own refined rare earths to General Motors as part of a deal made in 2021. Earlier this year, Energy Fuels agreed to buy a company that had built a major magnet facility in South Carolina. USA Rare Earth bought a Brazilian mine and a French processing plant. Startups, including Nth Cycle, Ucore Rare Metals, and others, have been experimenting with new ways to refine rare earths. Nth Cycle developed a technology it says can process rare earths and recently signed a $1 billion supply agreement with Glencore.
Some Chinese suppliers have begun holding back shipments to the United States for fear of offending the Chinese government. Ford Motor last year had to temporarily shutter U.S. factories after supplies of Chinese rare earths dried up.
Conclusion
Greenland Mines closed a deal for the Sarfartoq Rare Earths Project in southwest Greenland on September 1— just 17 days before President Trump’s new Greenland security deal was announced. On September 22, President Trump and the leaders of Greenland and Denmark signed a security agreement that permits a larger U.S. military presence on Greenland — a strategically located, mineral-rich island. Greenland Mines has now applied to double the size of its rare earth mine and, if approved, the North Carolina-based company’s Sarfartoq rare earth district would expand from 74 square miles to about 175 square miles. China dominates the rare earths industry, including its energy-intensive, complex processing. The Trump administration has spent billions developing the industry in the United States, but it will take time, leaving the United States reliant on China for these minerals needed for defense, energy, and electronics.
