The Biden administration is making a last-ditch effort to bolster critical minerals diplomacy by pushing for mining investments in Greenland, a region rich in materials essential for clean energy technologies. The outgoing administration has been working to solidify its legacy in critical minerals supply and support Western economies in reducing dependence on Chinese-controlled resources.
Jose Fernandez, the U.S. State Department’s undersecretary for economic growth, energy, and the environment, recently spent four days in Nuuk, Greenland’s capital, engaging with officials from the Ministry of Foreign Affairs and Minerals Resource Authority. His visit aimed to showcase Greenland’s mining potential and attract global investors.
“Greenland wants to become the next mining frontier,” Fernandez told Reuters. The region hosts significant deposits of critical minerals, including rare earth elements, nickel, and molybdenum, which are essential for battery production, renewable energy systems, and defense technologies.
Fernandez moderated a conference call from Nuuk involving more than 70 mining companies from Japan, Europe, and the United States, alongside diplomats from Australia, the UK, and the EU. Major players, such as Neo Performance Materials (rare earths), Anglo American (nickel), and Greenland Resources (molybdenum), presented projects to potential investors.
The U.S. Export-Import Bank and European Investment Bank participated, emphasizing the Biden administration’s effort to foster investment in Greenland while maintaining high environmental and ethical standards.
“In Greenland, we see the development of critical minerals as a shared global responsibility,” said Naaja Nathanielsen, Greenland’s minister for industry, trade, minerals, and justice.
Greenland’s strategic importance stems from its role as a semi-autonomous territory of Denmark with untapped reserves of critical minerals. The region also hosts a key U.S. Air Force base, underscoring its geopolitical significance.
The Biden administration has been assisting Greenland with permitting, mapping, and drafting mining investment laws to align with Western standards, aiming to provide an alternative to Chinese-linked mining ventures. Fernandez highlighted the administration’s commitment to ensuring that Greenland benefits equitably from any mining activities: “We don’t want to do that at their expense.”
As Biden’s term comes to a close, this initiative is part of broader efforts to strengthen his administration's legacy, which includes approving domestic mining permits and supporting Ukraine. However, with Donald Trump returning to office in January, uncertainties loom over the future of U.S. policy in Greenland. Trump famously attempted to purchase Greenland during his first term, though the bid was rejected by Denmark.
Fernandez expressed optimism that the global demand for critical minerals would sustain interest in Greenland’s resources, regardless of the political landscape. “The demand for critical minerals worldwide is increasing exponentially,” he said.
With growing global demand for critical minerals driving the clean energy transition, Greenland is positioning itself as a key player in the mining sector. The Biden administration’s efforts to attract ethical and sustainable investment could lay the groundwork for a robust Western supply chain, while balancing Greenland’s development and environmental priorities. As the energy transition accelerates, the stakes for mining in Greenland—and its role in global geopolitics—continue to rise.
