United States Secures 'Permanent Control' over Greenland Security... Accelerating Rare Earth Race to Counter China

The United States has signed an agreement to secure permanent control over the security of Greenland. This agreement simultaneously targets two core objectives: securing U.S. security interests and securing the rare earth supply chain.

U.S. Secures 'Permanent Control' and Surging Mining Stock Prices

According to the recently announced agreement, the United States will hold permanent control over Greenland's security and other necessary matters. Accordingly, hostile nations will be unable to station troops in Greenland or conduct sensitive investments without explicit written approval from the United States. The U.S. side stated that it will immediately commence procedures for large-scale military presence through this agreement, and the costs incurred during this process will not be borne by the United States.

As this news broke, stock prices of Greenland-related mining companies surged. According to video descriptions and transcript data, following the U.S. announcement, Greenland energy-related stocks rose from $1.2 to $3.2, an increase of over 160%, and the stock price of Greenland Mines skyrocketed from $2.8 to $9.42, recording a nearly three-fold increase in a single day with a 230% surge.

Greenland's Value as a Geopolitical Hub and a Treasure Trove of Rare Earths

Greenland is the world's largest island, with an area approximately 10 times that of the Korean Peninsula, and possesses extremely high geopolitical and resource value. The Thule base in the north is located on the ballistic missile paths of Russia and China, making it a key stronghold for the construction of the U.S. 'Golden Dome defense system'. Furthermore, 25 out of the 34 minerals designated as critical raw materials by the EU are deposited in Greenland.

In particular, it is rich in rare earth resources. The known rare earth reserves are at the level of 1.5 million tons, and the Tanbreez mine is one of the world's largest heavy rare earth deposits, with heavy rare earths accounting for 27% of the rare earths here. This is a crucial asset that can counter China's rare earth monopoly system. As the United States plans to prohibit Department of Defense contractors from using rare earth materials from China, Russia, Iran, and North Korea in weapon systems starting January 1, 2027, securing Greenland's resources is an issue directly linked to security.

Recognition of Denmark's Sovereignty and Variables in the U.S.-China Summit

The structure of this agreement takes a form that separates Denmark's sovereignty from U.S. control. Denmark stated that through this agreement, the sovereignty and territorial integrity of the Kingdom of Denmark and the right to self-determination of the people of Greenland were recognized. In other words, it is a method of maintaining rights as the owner of the land while allowing U.S. security control. In exchange, Denmark has decided to increase its defense spending to the level of 3% of its GDP, purchase $4.5 billion worth of American F-35 fighter jets, and establish a new military command headquarters in the capital, Nuuk.

The current international situation is changing rapidly. In a situation where China has recently suspended rare earth exports to the United States, rare earths are expected to be on the main negotiating table at the U.S.-China summit scheduled for September 24. As the United States shows movement to increase its negotiating power through the agreement with Greenland, what position South Korea's battery and electric vehicle industries, which are not NATO members, will occupy amidst this supply chain change is expected to act as a variable.