Why US want to Purchase Greenland?

Satyesh Bhandari

In 2019, President Donald Trump expressed interest in purchasing Greenland, citing its strategic and economic value.? He has again shown interest in the same after elected as President of US.

USA has purchased Louisiana (from France for $15 million); Alaska (from Russia for $7.2 million), Florida (from?Spain for $5 million), Gadsden (from Mexico for $10 million) and Danish Virgin Islands?(from?Denmark for $25 million) in past. The Alaska purchase ?in 1867 from Russia was one of the largest land deals in history.?

Since the 19th century, the United States has made, several attempts to purchase the island of Greenland. Discussions were held within the United States government about acquiring Greenland in 1867, 1910, 1946, 1955, and 2019.? Public discussions of purchasing the island occurred during Trump's first term in 2019 and again after Trump's 2024 re-election. In 1946, the U.S. offered $100 million to buy Greenland from Denmark.?

Although Greenland is an autonomous territory, it is in the control of Kingdom of Denmark.? The Greenlandic government has authority over Greenland's internal affairs such as the economy, social services, and infrastructure, while Denmark is responsible for the island's foreign affairs, defence, citizenship, currency, and monetary policy. Many Greenlanders are wary of external control and prefer to manage their resources and future development independently.

It is an interesting question that why US is sowing interest to annex the Greenland within the territory of US. The reasons could be various. The main reason seems to be the abundance of Natural Resources.

• Greenland is rich in untapped natural resources, including rare earth minerals, uranium, oil, gas, and fish stocks.
• Greenland is rich in untapped natural resources, including rare earth minerals, uranium, oil, gas, and fish stocks.
• Rare earth elements are crucial for modern technologies, including electronics, renewable energy systems, and defence equipment. Currently, China dominates the rare earth market, so access to Greenland's reserves could reduce U.S. dependency.
• Greenland ranks 8th globally in terms of rare earth element reserves. The island nation is estimated to have approximately 1.5 million metric tons of rare earth oxide reserves, which is at par with that of the United States.
• In the time of clean energy transition, demand for lithium, cobalt, and rare earths is skyrocketing.
• Only a small fraction of Greenland has been properly explored, suggesting significant potential for new discoveries.
• A survey carried out last year showed that out of the 34 minerals classified as deemed critical raw materials the European Commission, 25 are found in Greenland.
• The known rare earth element deposits (REE deposits) in South Greenland rank among the top known REE deposits.
• More than 3000 sq. km of ‘MMS’ (Magmatic Massive Sulphide) deposits having nickel-copper-platinum-cobalt (‘Ni-Cu-PGM-Co’) deposits is located on the southwest coast of Greenland. This is considered to have potential equivalent to one of the world’s largest nickel and copper mine in Siberia.

Here are few other key reasons of interest of United States in Greenland.

1. Geostrategic Importance

• Greenland's location in the North Atlantic makes it critical for monitoring and controlling Arctic Sea routes.
• The U.S. already has a significant military presence in Greenland, including the Thule Air Base, which is vital for missile defence, early warning systems, and satellite tracking.
• As Arctic ice melts due to climate change, new shipping lanes (like the Northwest Passage) are opening up, increasing Greenland's strategic value in global trade and security.

3. Arctic Competition

• The Arctic is becoming a zone of geopolitical competition as Russia and China are expanding their influence in the region.
• By strengthening ties with Greenland, the U.S. can secure a stronger foothold in the Arctic, counterbalance other powers, and protect its interests in emerging economic and security dynamics.

4. Climate Change and Emerging Opportunities

• As ice melts, Greenland becoming more accessible for resource extraction and transportation.
• Melting ice also makes the Arctic provide better and shorter shipping routes between Asia, Europe, and North America, which could reshape global trade.

In summary, U.S. interest in Greenland is a mix of strategic positioning, resource access, and preparation for the future dynamics of the Arctic.