What Lies Frozen In Greenland That Has The Power To Shake China's Control

Last Updated:January 20, 2026, 16:43 IST

Donald Trump has repeatedly viewed Greenland through the lens of a real estate deal, but the motivations are far from cosmetic

Greenland's mineral wealth offers a possible way to break China's monopoly. (AP)

The name Greenland is suddenly impossible to miss. From international newspapers to prime-time television debates, the world’s largest island, nearly four-fifths of it locked under ice, has become the centre of an escalating geopolitical confrontation between US President Donald Trump and several European nations.

At first glance, the intensity of the dispute appears puzzling. Why would global powers lock horns over a vast, icy landmass where ice sheets in some regions are nearly three kilometres thick and greenery is as rare as water in a desert? Yet beneath Greenland’s frozen surface lies a strategic and economic prize that could reshape global power equations.

Despite its name, Greenland is anything but green. The irony dates back to the 10th century, when the Viking explorer Erik the Red, exiled from Iceland, reached this ice-covered land. Hoping to attract settlers, he chose a name that sounded far more inviting than reality. The branding worked then, but today, Greenland’s value has little to do with appearances.

Trump has repeatedly viewed Greenland through the lens of a real estate deal, but the motivations are far from cosmetic. Scientists believe the island holds vast reserves of rare earth elements buried beneath its ice, minerals essential to modern technology. These include neodymium, critical for smartphone speakers, hard drives and electric vehicle motors; praseodymium, used in aircraft engines and high-intensity glass welding; dysprosium, vital for nuclear reactor control rods and laser systems; terbium, which enhances colour and brightness in LED lights and television screens; and lanthanum, used in hybrid car batteries and high-precision camera lenses.

There is currently no viable substitute for these elements. Without them, experts warn, global technology would effectively be pushed back by decades. At present, China controls nearly 80-90% of the global supply of rare earths, a dominance that deeply worries the US. Any disruption in supply could have serious consequences for industries ranging from defence to renewable energy.

Greenland’s mineral wealth offers a possible way to break this monopoly. That alone explains much of the renewed American interest. But the island’s strategic location adds another layer of significance. Positioned between North America, Europe and the Arctic, Greenland is considered a crucial vantage point for monitoring Russian and Chinese activity. As climate change accelerates ice melt, the Northern Sea Route is also becoming navigable, dramatically shortening shipping distances between Europe and Asia.

Politically, Greenland occupies a unique position. While it is geographically part of North America, it is an autonomous territory within the Kingdom of Denmark. It has its own government and parliament, but Denmark retains control over foreign policy, defence and monetary affairs. The island is home to just over 56,000 people, around 90 per cent of whom are Inuit, with most communities clustered along the coast.

The standoff intensified recently after Trump announced his intention to acquire Greenland outright. When European countries pushed back, Washington responded with economic pressure. From February 1, 2026, the US plans to impose a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, Britain, the Netherlands and Finland. Trump has warned that if a deal over Greenland is not reached by June 1, the tariff will rise to 25% and remain in place until his objective is achieved.

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