President Donald Trump said mineral access is being considered as part of talks involving Greenland, a development that could reduce China’s role in rare earth supply chains.

Trump made the comments while speaking at the World Economic Forum in Davos, Switzerland, after meeting with NATO leaders. He said the framework would involve security cooperation and mineral access for the United States and its partners, though he did not provide details on how it would be structured or which countries would be included.

“They’re going to be involved in the Golden Dome, and they’re going to be involved in mineral rights, and so are we,” Trump said.

The White House didn’t add much detail beyond that, saying more information would come out as talks continue. Trump has consistently framed Greenland as a security issue, not an economic one, arguing that the real goal is limiting China’s and Russia’s influence in the Arctic rather than extracting minerals for short-term gain.

Greenland has drawn attention largely because of what’s under the surface. The island holds an estimated 1.5 million metric tons of rare earth reserves, according to the U.S. Geological Survey, putting it among the top countries globally. Rare earth minerals are used in everything from military equipment and electric vehicles to semiconductors, robotics, and AI hardware.

China currently dominates the rare earth supply chain, producing most of the world’s mined output and controlling much of the processing capacity. Beijing has also shown it’s willing to restrict exports during trade disputes, which has raised concerns in the U.S. and Europe about how dependent Western industries have become.

Of course, China’s interest in Greenland isn’t new. Beijing declared itself a “near-Arctic state” in 2018 and has been involved in several mining efforts on the island. One of the most notable is the Kvanefjeld project in southern Greenland, which has financial backing from Shenghe Resources, a Chinese company that owns a big stake in the project’s parent company, Australia-based Energy Transition Minerals. Kvanefjeld is widely viewed as one of the largest undeveloped rare earth deposits in the world.

That project has been stalled since Greenland banned uranium mining in 2021 and is now tied up in legal disputes. Even so, analysts say it remains strategically important. Ryan Castilloux, founder of Adamas Intelligence, said a framework that gives the U.S. and its allies priority access to Greenland’s resources could effectively shut Chinese companies out if development resumes.

Another major project, Tanbreez, is also moving forward in southern Greenland. The site is owned by New York-based Critical Metals Corp., which recently received a letter of interest from the U.S. Export-Import Bank that could lead to a $120 million loan. The company’s shares jumped about 21% after the news and are up sharply so far this year.

Even with all the interest, mining in Greenland would be expensive and slow. The island’s remote location, harsh climate, limited infrastructure, and small population all add to the challenge. Skilled workers would likely need to be flown in, and shipping materials in and out would drive costs higher.

Castilloux said the U.S. has made progress building out its rare earth supply chain, including a Pentagon deal with MP Materials, and doesn’t urgently need Greenland’s resources. Trump has also acknowledged the challenges, saying mining beneath thick ice would be costly and difficult.

Greenland and Denmark have pushed back on Trump’s earlier suggestions that the U.S. could acquire the island, while several NATO allies have voiced support for Greenland’s sovereignty. Trump has since eased proposed tariffs on some European countries after talks with NATO leaders, placing Greenland within ongoing Arctic discussions.

For now, the discussions remain just that (discussions) with no timeline yet for what, if anything, comes next.

At the time of publishing this article, Stocks.News doesn’t hold positions in companies mentioned in the article.