Key facts
- Japan is preparing to send a delegation to Greenland to evaluate rare earth extraction.
- The delegation will include Japanese government and industry officials.
- Greenland possesses significant rare earth reserves.
- The initiative aims to reduce reliance on China's rare earth processing dominance.
- The EU has set targets for domestic extraction, processing, and recycling of strategic minerals under its Critical Raw Materials Act.
Japan is preparing to send a delegation to Greenland to evaluate potential rare earth extraction, a move aimed at reducing its dependence on China, which currently dominates global rare earth processing. The delegation, comprising officials from Japan's Ministry of Economy, Trade and Industry, trading companies, and the Japan Organization for Metals and Energy Security, will meet with local government officials.
This initiative aligns with the European Union's strategy under the Critical Raw Materials Act, which sets targets for domestic extraction, processing, and recycling of strategic minerals by 2030, including a cap on reliance from any single country. Greenland's significant rare earth reserves make it a focal point for these diversification efforts.
However, developing these resources faces challenges, including Greenland's ban on uranium mining, which affects the Kvanefjeld deposit, and ongoing legal disputes. The Tanbreez project is progressing, with a feasibility study expected in late 2025. The U.S. EXIM Bank has also indicated potential financing for the Tanbreez project, highlighting broader international interest in Greenland's mineral wealth.