Greenland may be covered in ice, but beneath its surface could be resources critical to the global economy — including rare earth minerals, nickel, copper, palladium, cobalt, oil and natural gas.
The Arctic island’s location is just as valuable.
Positioned between North America and Europe, Greenland sits along key military and shipping routes. As conflicts in Ukraine and Iran expose vulnerabilities in global energy and supply chains, the island has become increasingly important to the United States and other world powers.
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Those factors help explain why President Donald Trump has spent years pushing for greater American control and influence in Greenland and why his administration recently reached a new security agreement with Denmark and Greenland.
The deal, which Trump signed on the sidelines of the United Nations General Assembly, will expand the U.S. military presence on the island while keeping Greenland under Danish sovereignty.
Here are three reasons Greenland has become one of the world’s most strategically important places.
The United States is seeking to reduce its dependence on China and Russia for critical minerals used in electronics, batteries, energy infrastructure and defense technology.
“We don’t want to be dependent on China for our rare earth minerals, and we don’t want to be dependent on Russia for them either,” Robert Price, CEO of Greenland Energy Company and president of USFM Corporation, told Fox News Digital.
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Price’s USFM is exploring nickel, copper, palladium and cobalt deposits around Disko Island in western Greenland. He said the region could eventually rival Russia’s mineral-rich Norilsk district, though its potential remains unproven as drilling continues.
Greenland’s potential riches extend beyond minerals. Price’s Greenland Energy Company is pursuing permits for an exploratory oil well planned for 2027 on the island’s eastern side, where he said the geology resembles the petroleum-producing North Sea.
“Our licenses are similar to the same petroleum system as the North Sea,” Price said, adding that the company has sampled oil on and below the surface.
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The project comes as the Iran war disrupts global energy markets and threatens shipping through the Strait of Hormuz a critical artery for the world’s oil supply.
“One of the reasons that we are exploring for oil in Greenland is because of what’s going on in the Strait of Hormuz right now,” Price said.
Greenland’s oil and gas potential remains unproven and would require additional permits, exploration and investment.
Greenland’s strategic value also comes from its location between North America and Europe, near key air, sea and missile routes connecting the United States, Russia and Europe.
The U.S. has maintained a military presence on the island for decades. Pituffik Space Base, formerly known as Thule Air Base, is the northernmost Defense Department installation and supports missile warning, missile defense and space surveillance.
Melting Arctic ice is opening new shipping routes and increasing interest from the United States, Russia and China.
Trump’s agreement with Denmark and Greenland would expand the U.S. military presence while preserving Danish sovereignty, according to the administration. Price said the deal could also boost investor confidence in long-term oil, gas and mineral projects.
“What it does is it shores up long-term investment in Greenland, and that’s what our projects are,” Price said. “They’re long-term investments from oil, gas and minerals.”
