A worldwide rush to tap the Arctic’s resources is accelerating as countries look for alternatives to China’s stronghold over strategic minerals. Melting ice and improving access have drawn renewed interest to the largely undeveloped polar region, which is increasingly viewed as a potential source of rare earths, base metals and new trade routes, as per CNBC.US President Donald Trump has repeatedly highlighted the strategic value of Greenland, describing U.S. control of the territory as an “absolute necessity” for both economic and security reasons.Canada has also stepped up investment in the region amid strained ties with Washington, while Moscow continues to position itself as a major Arctic power. Russian President Vladimir Putin recently praised the launch of a new nuclear-powered icebreaker, saying it remains important “to consistently strengthen Russia’s position” in the Arctic.Marc Lanteigne of the Arctic University of Norway was quoted by CNBC as saying that the region is now being seen as a source of “strategic materials and rare earths,” noting that Greenland contains “base metals, precious metals, gem stones, rare earths, uranium … it’s all there.”

Greenland becomes a focal point

As per CNBC, climate change has reshaped parts of Greenland, exposing areas previously covered by ice. A study by the University of Leeds found some of the island’s glaciers and ice sheet have given way to wetlands, shrubs and bare rock, making certain minerals more accessible to companies.Tony Sage, CEO of Critical Metals, was cited by CNBC as saying that he had seen rising investor interest in Greenland, particularly since Trump returned to office. The firm is developing large rare earth assets in the south of the island. Another firm, Amaroq, has also reported major discoveries. CEO Eldur Olafsson described the company’s recent find of high-grade rare earths as significant and said its confirmation of commercial quantities of germanium and gallium could be even more important. “The germanium, gallium piece is, in my opinion, much bigger news than people understand,” he said, according to CNBC.Both metals are used extensively in electronics, electric vehicles and defence technologies. China imposed export controls on these metals in 2023 before later suspending its ban on shipments to the US, though restrictions remain.Olafsson said Amaroq’s near-term plan involves generating cashflow from zinc, lead, silver and germanium and gallium, while progressing its rare earths projects. He added that the rare earths market remains relatively small and must be approached cautiously.Despite the growing excitement, Lanteigne said that expectations often exceed reality. Even under favourable conditions, he said it could take 15 to 20 years for Arctic mining ventures in places like Greenland to turn a “serious profit,” citing logistical issues, harsh weather and the need to construct entire supply chains in remote areas.

Race extends to Arctic Sweden

Interest is not limited to Greenland. Sweden is moving to develop one of Europe’s largest known rare earth deposits in the Per Geijer area near Kiruna. State-owned LKAB, which operates a major iron ore mine there, is now in discussions with European policymakers to ensure the project is viable.Niklas Johansson of LKAB said that while key materials have already been extracted to the surface through existing mining operations, profitability is not guaranteed. “It looks like it is for us at the moment, but it’s not something that you’d say, ‘oh it’s a no brainer,’” he said, noting the challenges would be even greater for companies without established infrastructure.