Greenland’s vast mineral wealth could reshape the electric vehicle industry as climate change reveals previously inaccessible deposits of crucial battery materials.
The autonomous Danish territory holds 25 of the 34 minerals that the European Commission labels as “critical raw materials.” These include nickel and cobalt — essential components for EV batteries. According to the Arctic Economic Council, Greenland’s reserves could be among the world’s largest.
Mining hasn’t been practical in Greenland due to its harsh Arctic environment and extensive ice coverage. That’s changing as glaciers retreat, exposing mineral-rich areas that were once buried under ice.
The Biden administration is taking notice. Last summer marked the first-ever lithium exploration efforts in Greenland — a project conducted with U.S. State Department involvement. The administration has also helped Denmark craft mining investment legislation to attract development in the region.
Interest is growing rapidly.
Canadian firm Brunswick Exploration is betting big on Greenland’s potential. The company announced plans last November to expand its lithium exploration licenses, with major initiatives planned for 2025.
While former President Trump’s suggestion to purchase Greenland from Denmark made headlines, the territory’s mineral wealth likely wasn’t the primary motivation. The U.S. already has access to Greenland’s resources through existing trade agreements with Denmark. A territorial acquisition would mainly affect environmental and labor regulations.
The current political landscape suggests mixed priorities. Trump’s administration, through new Transportation Secretary Sean Duffy, is actually moving to reduce fuel economy standards — a policy that could slow EV adoption. This stands in contrast to the urgency of developing domestic battery material sources, including untapped U.S. lithium deposits that remain largely unexploited.
The Lever’s reporting highlights how climate change’s destructive effects might ironically enable the extraction of materials needed for clean energy technologies — though the environmental implications of new mining operations remain a serious consideration.
