Trump’s administration makes a critical move to break China’s stranglehold on rare earth minerals by backing a $120 million loan for mining in Greenland, signaling America’s renewed commitment to resource independence and strategic economic security.
Key Takeaways
- The US Export-Import Bank is considering a $120 million loan for Critical Metals’ Tanbreez rare earths mine in Greenland as part of Trump’s strategy to reduce reliance on China.
- The Tanbreez project is expected to cost $290 million and produce 85,000 tonnes of rare earths concentrate annually by 2026, providing crucial materials for technology and defense industries.
- This could become the Trump administration’s first overseas mining investment, directly addressing Beijing’s export restrictions that have threatened American technological and defense capabilities.
- The US government has actively discouraged Chinese investment in the Greenland project, representing a broader effort to secure America’s supply chain for critical minerals.
Breaking China’s Rare Earth Monopoly
The US Export-Import Bank’s consideration of a $120 million loan for rare earth mining in Greenland marks a significant step in President Trump’s ongoing efforts to counter China’s dominance in critical mineral supply chains. The proposed funding would support Critical Metals’ Tanbreez mine project, which is positioned to become a vital non-Chinese source of rare earth materials essential for everything from smartphones to missile guidance systems. The move comes as Beijing continues to weaponize its near-monopoly on rare earth processing, imposing export restrictions that threaten America’s technological and military capabilities.
The Tanbreez project represents a $290 million investment with ambitious production goals of 85,000 tonnes of rare earths concentrated annually once operational in 2026. The EXIM loan, contingent on the project securing equity from strategic investors, would specifically support technical work and initial production stages. This initiative aligns perfectly with President Trump’s America First agenda, ensuring that the United States can maintain technological superiority without depending on potentially hostile foreign powers for critical resources, Stated President Trump.
Strategic Investment in National Security
The Trump administration’s support for the Greenland mining project demonstrates a clear-eyed approach to national security concerns. Rare earth elements are crucial components in defense systems, including fighter jets, precision-guided munitions, and communications equipment. By diversifying supply sources away from China, which currently controls approximately 80% of global rare earth processing, the United States is taking concrete steps to protect its military readiness and technological edge. The administration has actively discouraged Critical Metals from accepting Chinese investment, reflecting the strategic importance of keeping these resources out of Beijing’s sphere of influence.
“This funding package is expected to unlock significant value for our project and our stakeholders,” Said Tony Sage, Critical Metals CEO.
EXIM’s potential 15-year loan agreement with Critical Metals represents more than just financial backing—it signals America’s long-term commitment to building resilient supply chains. The company has already met initial requirements for the loan and is exploring additional funding options, including discussions with major defense contractors like Lockheed Martin. This public-private partnership approach ensures that America’s defense industrial base can access the materials it needs without relying on geopolitical competitors who have shown willingness to use resource access as leverage.
Expanding America’s Resource Independence
The Greenland initiative is part of a broader strategy by the Trump administration to secure America’s critical mineral supply chain. EXIM has also extended a letter of interest for a $1.8 billion loan to Perpetua Resources for a mine in Idaho, demonstrating commitment to developing domestic resources alongside strategic international partnerships. These investments address the growing recognition that rare earth elements are the oil of the 21st century—whoever controls these resources gains tremendous economic and military advantages in an increasingly technology-dependent world.
Greenland’s vast mineral resources represent an opportunity not just for America but for strengthening ties with allies as alternatives to Chinese suppliers. The island nation’s Minister for Business and Mineral Resources has called for external investment in mining and tourism, creating a natural alignment of interests. Despite challenges like limited investor interest and environmental concerns, the Trump administration recognizes that supporting Greenland’s responsible resource development serves multiple strategic objectives—from creating jobs and economic growth to ensuring that critical technology supply chains remain in friendly hands.
