WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 42
Global
Outlook
However, mining Greenland resources would be complex
for various reasons such as remoteness, harsh climate, lack
of infrastructure and limited workforce but also for political
reasons. Indeed, in 2021, a ban on Uranium extraction178 was
decided which also challenges REE extraction, as uranium is
commonly combined with REE in deposits.
177 https://ip-quarterly.com/en/dont-buy-greenland-buy-its-minerals#:~:text=Mining%20
Politics%20in%20Greenland&text=The%20ban%20was%20instated%20following,is%20
commonly%20found%20alongside%20deposits.
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Politics%20in%20Greenland&text=The%20ban%20was%20instated%
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key components and finished products that use rare earths,
especially green technologies that China dominates (see above).
FIGURE 9
EU reliance on select Chinese material imports
80%
60%
40%
20%
0%
Natural Graphite
Source: European Council, May 2024
Germanium
Gallium
Light rare
earth elements
Heavy rare
earth elements
WEMO 2024
In this context, China, Europe and USA companies are eying
Greenland which is thought to have the second-largest reserves
of REE, surpassing Vietnam, Brazil, and Russia.177 Greenland
has also large graphite deposits: it’s 6 Mt of known graphite
resources could exceed the projected EV graphite demand
for 2040 (3.5 Mt) and counter Chinese mineral supremacy.
Greenland has also large Oil and Gas reserves. This is probably
why, in 2019, USA President Donald Trump discussed the idea
of purchasing Greenland!
Reducing the significant dependency on rare earths for Western
countries would still require partnerships with third countries.
Additionally, the USA and the EU are substantial importers of
42
IRA law prohibits manufacturers from sourcing battery
components and critical minerals from Foreign Entities of
Concern (FEOC) starting in 2024 and 2025, respectively. FEOCs
include China, Russia, Iran and North Korea. However, the
final rules, released May 2024, would delay the restrictions on
graphite and some critical minerals until 2027.
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