President Donald Trump’s Greenland push has moved from threats to a new security agreement with Denmark and Greenland that he says will give the United States “permanent control” over the island’s security and allow Washington to expand its military presence there.
The agreement still requires approval from Danish and Greenlandic lawmakers. Its full terms have not been made public, but officials say it would leave Greenland under Danish sovereignty while barring China, Russia and other non-NATO adversaries from establishing military bases or making certain sensitive investments on the island.
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Greenland rarely draws global attention. But as Arctic ice melts and great powers compete for influence, the world’s largest island has become a strategic prize. A semi-autonomous territory of Denmark, Greenland is home to a key U.S. military base and sits near emerging shipping routes and critical mineral deposits.
Greenland’s roughly 56,000 residents are spread across five municipalities, with most living in small coastal towns. About 80% of the island is covered by an ice sheet, leaving much of its vast interior uninhabited. Despite its small population, Greenland is nearly the size of Alaska and Texas combined.
Its location off Canada’s northeastern coast places Greenland at the heart of Arctic defense planning. The U.S. has maintained a military outpost in northwestern Greenland since 1953 at Pituffik Space Base, now operated by the U.S. Space Force. Russia also maintains military installations in the region, while China has sought greater access since declaring itself a “near-Arctic state” in 2018.
Retreating Arctic ice is opening shipping lanes around the island that could shorten trade routes between North America, Europe and Asia.
The changing landscape has also drawn attention to Greenland’s rare earth elements and other critical minerals used in technology, renewable energy and military systems.
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Rare earth elements are especially important in high-performance magnets used in electric vehicles, wind turbines, generators and precision-guidance systems. They are also used in missile guidance, radar, sonar, satellites and advanced aircraft.
China dominates the global rare-earth supply chain, accounting for roughly 60% of mining and more than 90% of processing capacity. As the U.S. and European Union seek to reduce their reliance on Beijing, Greenland has emerged as a potential counterweight.
Trump’s agreement may fall short of his earlier goal of bringing Greenland under U.S. control, but it could still give Washington a larger military and strategic foothold in the Arctic.
As competition over shipping routes, defense positioning and critical minerals intensifies, Greenland’s importance is likely to grow.
