The dual Western and Chinese rare earth supply chains heat up further, as Greenland announces joint rare earth development with Japan, the U.S., and Europe.

Summary: Greenland’s Premier Nikolaj announced an active invitation to Japan, the U.S., and Europe to jointly develop rare earth resources—explicitly excluding Chinese enterprises. The island hosts 24 of the EU’s 34 critical rare earth elements; the Tanbreez mine in southern Greenland holds over 45 million tons of reserves, with a high proportion of heavy rare earths. A U.S. firm has already secured key environmental approvals and is poised to begin mining operations. Against the backdrop of diverging Sino-Western rare earth supply chains, this initiative injects fresh momentum into the Western “mine-to-magnet” value chain, helping the West reduce dependence on China and bolster autonomy in green technology and national defense. I. As the West rebuilds its rare earth supply chain, Greenland’s Premier called on the U.S., Europe, and Japan to cooperate on rare earth development. On November 19, Nikolaj, Premier of Greenland—a self-governing territory of Denmark—granted an exclusive interview to the Nikkei newspaper. Regarding Greenland’s vast, untapped rare earth and other mineral resources, Nikolaj stated that, beyond existing cooperation agreements with the EU and the U.S., he also urged Japan to join Greenland’s rare earth collaboration, citing Japan’s world-leading expertise in rare earth refining and rare earth alloy manufacturing. Nikolaj, aged 34, assumed office as Greenland’s Premier in April this year. U.S. President Trump, viewing Greenland—as a strategic Arctic geopolitical hub—as central to intensifying competition with China and Russia, expressed interest in “purchasing” the island. Beyond advancing exploration and development of Greenland’s rare earth and other critical minerals, melting Arctic sea ice due to climate change could also open new shipping routes. Although Greenland rejected Trump’s overture to “buy” the island—stating, “We will never become a commodity—and that will not change”—it simultaneously pursued concrete steps toward closer “normalization” with the U.S. Under the principle of “mutual respect and mutual benefit,” Greenland and the U.S. deepened cooperation, including on rare earth development. Earlier in 2024, U.S.-based Critical Metals Inc. secured rights to the Tanbreez mine in southern Greenland’s Kangerlussuaq region—the site of one of the world’s largest rare earth deposits. Denmark facilitated this Greenland–U.S. partnership. Although China had previously shown clear interest, it was ultimately excluded by both Denmark and Greenland. According to reports from the Global News Agency, on November 4, 2025, Critical Metals Inc. announced it had obtained crucial environmental approvals for its proposed Tanbreez mine project in southern Greenland. CEO Tony Sage stated in a press release: “This milestone marks a pivotal step forward for Critical Metals Inc., signaling the imminent commencement of mining operations at Tanbreez.” Earlier, on October 9, Nikolaj delivered a speech at the European Parliament, thanking the EU as a “trusted friend” and urging this 27-nation bloc to invest in Greenland’s mineral resources, renewable energy infrastructure, airports, and internet services. Nikolaj emphasized that this Arctic island possesses 24 of the 34 critical rare earth elements identified by the EU—minerals ideally suited for producing lithium-ion batteries, electronic components, and magnets essential to the green economy. In his European Parliament address, the 34-year-old Premier declared: “We need to build partnerships and collaborations with like-minded countries and institutions whose values align with ours.”

Europe’s ‘lithium dream’ is anything but smooth sailing.

Vulcan Energy Resources recently announced the official launch of a lithium hydroxide refining plant in Germany—the second such facility to come online in Europe this year, following the opening of Europe’s first lithium hydroxide refinery in Germany in September. Recently, European countries have been rapidly expanding their lithium battery production capacity. Yet even if all currently planned projects materialize, EU domestic output is projected to fall short of battery industry demand by 2030. Compounded by environmental controversies, local resident protests, and resource scarcity, Europe’s path toward building a resilient lithium battery supply chain remains long and arduous. According to Vulcan Energy’s announcement, the lithium hydroxide production facility is located west of Frankfurt, Germany, and extracts lithium salts from local brine salt deposits. It has now entered pilot production and, once fully operational, will supply lithium battery raw materials to automakers including Volkswagen, Renault, and Stellantis. Europe’s recent lithium-related initiatives extend beyond this single project. In September, AMG Lithium’s lithium hydroxide refinery commenced operations in Germany—Europe’s first dedicated lithium hydroxide production plant—with an annual capacity of approximately 20,000 tons. In November, German company tozero announced it had raised over €11 million from Honda and other firms to fund lithium battery recycling operations, aiming to boost Europe’s domestic lithium feedstock supply. According to Reuters, Germany’s government has mobilized an investment fund totaling up to €1.1 billion this year, primarily earmarked for domestic critical raw materials production projects and green high-tech development. Over the past year, European nations have accelerated efforts to establish a homegrown lithium battery industrial chain—from mining and refining to recycling. In northern Portugal, UK-based Savannah Resources has planned four lithium mining projects. In Spain, two energy companies jointly established a battery recycling venture. Across France, multiple regions are accelerating geological surveys and developing domestic lithium mining initiatives. Last year, major EU institutions reached agreement on the Critical Raw Materials Act, with battery manufacturing designated as a top-priority sector under the legislation.

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