Ahead of President-elect Trump’s inauguration on January 20, Trump seems to be fixated on acquiring the largest island in the world – Greenland. Considering Trump’s pursuit of the island, there is growing speculation over his strategic motivations. According to a CNBC report, many mining executives and researchers believe that Trump is pursuing Greenland to tap the island’s rich reserves of critical minerals, describing it as an “enormous opportunity.”
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Trump Intensifies Push for Greenland
Trump’s long-standing interest in Greenland has escalated dramatically in recent weeks. Just ahead of his January 20 inauguration, Trump termed the U.S. ownership of the autonomous Danish territory an “absolute necessity” and cited national security and global freedom as primary reasons for the ownership. Trump has also hinted at the possible use of military or economic measures to achieve his goal, doubling down on his controversial stance.
In addition, Trump’s incoming national security advisor, Rep. Michael Waltz, emphasized the strategic importance of the move, labeling it as part of a broader “America First” agenda.
“This is about critical minerals. This is about natural resources,” Waltz explained to Fox News in an interview on January 9, as cited by the CNBC report.
However, Greenland’s Prime Minister Mute Egede has firmly rejected the proposition, stating that the Arctic island is “not for sale” and urging the global community to respect its aspirations for independence.
Why Is Greenland an Important Proposition for the US?
Critical minerals are rare earth elements, including copper, lithium, and nickel, that are crucial for green technologies like wind turbines, electric vehicles, and energy storage systems, as well as national defense.
Interestingly, China currently dominates the critical minerals supply chain, producing about 60% of the world’s rare earth materials. This reliance has raised alarms in the U.S., particularly as nations pivot toward low-carbon energy sources.
In fact, according to a CNBC report citing Jakob Kløve Keiding, senior consultant at the Geological Survey of Denmark and Greenland (GEUS), a 2023 study confirmed a total of 38 raw materials on the island, with significant potential in rare earth metals like niobium, tantalum, and titanium.
What Are the Best EV Stocks to Buy Right Now?
It remains to be seen what is the end result of Trump’s pursuit of the island. However, for investors interested in investing in the EV sector that uses these critical minerals, we have rounded up the best stocks to buy that analysts are cautiously optimistic about, using the TipRanks Stock Comparison tool. These stocks include Li Auto (LI), Rivian (RIVN), General Motors (GM) and XPeng (XPEV).
