Donald Trump suggested making Canada the 51st state of the US, referred to the Panama Canal as “America’s canal” and proposed renaming the Gulf of Mexico to “America’s Gulf”.

Trump has particularly emphasized Greenland, stating that the United States believes that control over Greenland is critical for national security and ensuring freedom of movement globally. He proposed purchasing Greenland, but Greenland’s Prime Minister Mute Bourup Egede rejected the idea, saying, Greenland belongs to its people and is not for sale.

Greenland holds strategic importance due to its Arctic location and mineral wealth. A 2023 report revealed that its ice-free regions contain deposits of 38 valuable minerals, including rare earth elements like neodymium and praseodymium. These are essential for electric vehicles and wind turbines. Adam Simon, a professor at the University of Michigan, said, Greenland could contain up to 25% of the world’s rare earth elements, amounting to approximately 1.5 million tonnes.

The rising global demand for these minerals, driven by renewable energy initiatives, has led to international competition. China currently dominates rare earth mining and processing, controlling 60% of mining and 85% of processing. In Greenland, two Australian companies are mining rare earth minerals, but one is partially funded by China’s Shenghe Resources.

The US has been wary of China’s growing presence in Greenland. During his first term, Trump designated rare earth minerals as essential to US national security and signed cooperation agreements with Greenland.

Greenland, part of the Kingdom of Denmark, relies on Danish subsidies and has a population of just 57,000. While the idea of purchasing Greenland was first floated by the former US President Andrew Johnson in the 1860s, Trump’s repeated mentions of Greenland highlight its strategic and economic importance to the US.