Trump Administration Pursues Greenland Rare Earths to Reduce China Dependence
The Trump administration is actively pursuing strategies to secure America's access to critical minerals, with a particular focus on Greenland's vast rare earth deposits. This push includes leveraging the Defense Production Act and exploring equity investments in key projects.
In June, Critical Metals applied for a $50 million grant under the Defense Production Act to support its Greenland projects. The administration has shown keen interest in the Tanbreez rare earths project, which is expected to produce 85,000 metric tons of rare earths concentrate annually, offering a diverse mineral portfolio. Discussions are underway to convert this grant into an equity position in Critical Metals Corp, which owns the Tanbreez project. This move aligns with the administration's broader strategy to reduce dependence on China for these vital resources, given Greenland's enormous strategic importance due to its potentially world's largest undeveloped rare earth deposits outside China. Additionally, the U.S. Export-Import Bank is considering a separate $120 million loan for the Tanbreez project, demonstrating a multi-faceted approach to securing interests in Greenland's mineral resources.
The Trump administration's efforts to secure access to Greenland's critical minerals, exemplified by its interest in the Tanbreez project, reflect growing concerns about China's dominance in global rare earths markets. By pursuing direct investment, financing support, and legislative mechanisms, the administration aims to strengthen domestic supply chains for these vital resources, ensuring a more secure and diversified mineral portfolio for the U.S.
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