Key facts
- The EU and Japan are exploring joint development of rare earth resources in Greenland.
- The goal is to reduce dependence on China's rare earth processing dominance.
- The EU's Critical Raw Materials Act sets targets for extraction and processing.
- Greenland has a ban on uranium extraction.
- U.S. financing interests already exist in Greenland's resources.
The European Union and Japan are exploring the possibility of a joint development project for rare earth resources located in Greenland. The primary objective of this collaboration is to diminish the EU and Japan's dependence on China, which currently holds a dominant position in the global rare earth processing sector. This strategic move is in line with the European Union's Critical Raw Materials Act, a piece of legislation designed to set specific targets for the extraction and processing of critical raw materials within the bloc. Despite the strategic intent, the initiative encounters several significant challenges. One major hurdle is Greenland's existing ban on uranium extraction, a mineral often found alongside rare earth elements. Furthermore, there are already established financial interests from the United States in Greenland's resource sector, which could complicate joint ventures involving other international partners.