When President Donald Trump proposed the idea of the United States purchasing Greenland in 2019, he was met with widespread ridicule. Politicians and media outlets dismissed it as an absurd and unrealistic proposition. However, history has repeatedly demonstrated that visionary leaders often recognize strategic opportunities before the political class catches up. Trump’s instinct was correct: Greenland is a vital asset that the United States needs now more than ever, both for its military importance and its vast reserves of critical rare earth elements (REEs).

The idea of the US acquiring Greenland is not a novel one. As early as 1868, Secretary of State William Seward proposed acquiring Greenland and Iceland, recognizing their strategic importance. During World War II, following Denmark’s fall to Nazi Germany, the United States swiftly moved to establish military bases in Greenland to prevent Axis forces from exploiting its location. Despite these efforts, Nazi Germany managed to operate four weather stations on the island, demonstrating its strategic vulnerability.

In 1946, President Harry Truman made a formal offer of $100 million to Denmark to purchase Greenland, citing its immense value as a Cold War military asset. Although Denmark rejected the proposal, Greenland remained strategically important. The US continued to operate Thule Air Base (now Pituffik Space Base), a crucial Arctic military installation that plays a key role in missile defense and space surveillance.

Today, as climate change opens up new Arctic trade routes, Greenland’s strategic importance has only increased. The island sits at the crossroads of emerging maritime corridors between North America, Europe, and Asia, making it a valuable geopolitical asset.

Beyond its strategic location, Greenland possesses some of the world’s largest untapped deposits of rare earth elements. These minerals are essential for modern defense systems, semiconductors, electric vehicles, and artificial intelligence-driven computing. Unfortunately, the global rare earth market is currently dominated by China, which refines over 85 percent of the world’s supply.

China has systematically leveraged its dominance in critical minerals to exert geopolitical pressure. In 2010, Beijing restricted rare earth exports to Japan over a diplomatic dispute. More recently, it imposed limits on gallium and germanium exports-key materials in semiconductor manufacturing-while banning exports of these minerals to the United States in late 2024. This economic blackmail underscores the urgent need for the US to secure an independent supply of rare earth elements.

Greenland offers a solution. The island’s Kvanefjeld deposit alone contains an estimated 111 million metric tons of REE-bearing ore, including neodymium, dysprosium, and terbium-minerals crucial for military applications, wind turbines, and electric vehicles. The greater Ilímaussaq Complex holds even more untapped reserves. However, China has already made moves to gain influence in Greenland’s mining sector, with Chinese interests being the largest shareholders in the Australian company that controls the Kvanefjeld deposit. Washington must act before Beijing further entrenches its control over these resources.

Securing Greenland’s rare earth elements is only part of the equation. The US must also establish a domestic processing and refining capacity to ensure self-sufficiency. Currently, most raw rare earth materials are sent to China for refining, furthering US dependence on Beijing.

Texas presents itself as the ideal hub for REE processing and manufacturing. With its deep-water ports, extensive energy infrastructure, and skilled industrial workforce, the state is uniquely positioned to become a center for rare earth production. Texas already hosts a heavy REE processing plant at Round Top, while MP Materials has begun producing separated rare earth oxides at its Mountain Pass, California, facility. However, these efforts remain insufficient in scale to counter China’s dominance.

By developing a secure Greenland-to-Texas rare earth supply chain, the US could create thousands of high-paying jobs while reinforcing its economic and national security. A well-integrated domestic supply chain would insulate American industry from foreign coercion and ensure long-term stability in critical sectors.

To counter China’s stranglehold on the REE market and solidify a Greenland-to-Texas supply chain, the US government must take decisive action. The following policy measures should be implemented immediately:

Fast-Track Greenlandic REE Development: The US should provide financial and diplomatic incentives for American firms to invest in Greenland’s mining sector. Direct government partnerships and subsidies could ensure that US companies, rather than Chinese-backed firms, gain control over Greenland’s resources.

Support Greenland’s Path to US Alignment: Washington should explore pathways for Greenland to transition from local autonomy under Danish rule to an arrangement with the US similar to that of the Republic of the Marshall Islands or the Republic of Palau. A plebiscite on independence, followed by negotiations for closer economic and military ties with the United States, could serve as a long-term solution.

Streamline REE Refining Approvals: The US government must accelerate permitting processes for domestic REE refining and processing facilities. Current environmental regulations create significant delays, hindering efforts to compete with China’s rapid industrial expansion.

Bolster National Stockpiles: The Department of Defense and the Department of Energy should prioritize the stockpiling of critical minerals. Establishing strategic reserves of rare earth elements would mitigate future supply chain disruptions and provide a buffer against economic warfare by China.

Enhance Arctic Military Presence: Given Greenland’s strategic location, the US should reinforce its military presence in the Arctic. Upgrading infrastructure at Pituffik Space Base and increasing naval patrols would help secure US interests in the region.

America’s continued reliance on China for rare earth elements represents a significant vulnerability-one that compromises both economic stability and national security. Greenland provides an opportunity to break free from this dependence and establish a secure, Western-controlled supply chain for critical minerals.

President Trump recognized Greenland’s strategic value in 2019, and his instincts have been validated by subsequent events. With China tightening its grip on global REE supplies and the Arctic becoming increasingly contested, the US must act decisively before it is too late.

Greenland is not just a remote landmass; it is a North American strategic, economic, and military asset. The time to secure its resources-and strengthen America’s position on the world stage-is now.

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