Securing Strategic Minerals: Trump’s Bold Plan for Greenland

Remote and icy, Greenland significantly impacts global weather and climate change. According to an Ohio University professor, the world’s largest island is at the center of climate change, resource scarcity, geopolitics, and trade, making it central to global competition.

Trump's Renewed Call for U.S. Ownership of Greenland

In 2024, former President Trump renewed his call for U.S. ownership of Greenland, describing it as “an absolute necessity” for economic security. He suggested that military or economic coercion could be considered to take control of Greenland or even Panama, citing their strategic importance. Experts argue that Greenland’s natural resources, including rare earth metals, may also play a role in these discussions, particularly as climate change makes them more accessible.

Greenland's Geopolitical Significance

Greenland, strategically located between the U.S. and Europe, is crucial to U.S. defense strategy, especially against Russian threats. Once a Danish colony, it is now an autonomous Danish territory. Its location includes the Northwest Passage and the Greenland-Iceland-United Kingdom gap, key maritime regions vital for international security, notes Ulrik Pram Gad of the Danish Institute for International Studies.

The Role of Satellite Data in Monitoring Greenland

The geopolitical interest surrounding Greenland and its natural resources is expected to increase demand in the Earth observation market. Satellite data is essential for monitoring Greenland’s changing ice cover, natural resources, and key maritime routes - critical as climate change increases accessibility.

In August 2024, Planet Labs PBC signed a contract with NATO’s Communications and Information Agency (NCIA) to support the Alliance Persistent Surveillance from Space (APSS) program. Using Planet’s SkySat satellite data, the program enhances NATO missions by improving intelligence sharing and real-time space-based data collection. This collaboration strengthens decision-making and provides a unified operational picture for NATO allies.

According to Planet’s CEO and co-founder, “In a time of heightened global conflict, this ability to supply NATO is more critical than ever to reinforce multinational alliances and advance peace around the world.”

Rare Earth Elements (REEs) and Their Growing Importance

Rare earth elements (REEs) are crucial for technologies such as magnets and batteries, supporting industries like healthcare, energy, and consumer electronics. China is the world’s largest producer of rare earths, and with their critical role in the zero-carbon transition, the EU and U.S. have classified REEs as Critical Raw Materials. Investors like Bill Gates are backing AI-driven mining projects to secure a sustainable supply of these essential resources.

REEs in Semiconductor Production

REEs are vital in the production of semiconductors, which power everything from computers to defense equipment. In response to global competition, the Biden administration announced a new semiconductor R&D facility at Arizona State University’s Research Park earlier this year. This facility, set to open in 2028, is part of the CHIPS for America program, aiming to advance U.S. semiconductor leadership and national security.

The CHIPS Act, designed to boost U.S. semiconductor capacity, is expected to continue even under the Trump administration. Taiwan currently dominates the global chip market, producing over 60% of chips, with Taiwan Semiconductor Manufacturing Company (TSMC) supplying major companies like Nvidia and Apple. To highlight the company's important role, Nvidia's CEO said "There's air and TSMC" praising its contribution to the chip space. Now, it’s worth noting that TSMC intends to double its production this year, with Nvidia being its largest customer. According to Forbes, Nvidia’s orders appear to be the primary driver behind this increase in production.

United States Secretary of Commerce also told CNBC that "Repealing the CHIPS Act would make Americans less safe …I just don't think they'll do that".

TSMC's Investment in U.S. Semiconductor Manufacturing

To reduce dependence on Asian chip production, TSMC committed $12 billion to build a semiconductor plant in Phoenix, Arizona. By December 2022, the total investment reached $40 billion, and in April 2024, a third facility was announced, bringing TSMC’s U.S. investment to over $65 billion - marking the largest foreign direct investment in U.S. and Arizona history.

Challenges and U.S. Efforts to Strengthen Tech Dominance

Relying on Asian chip production has posed challenges to U.S. technological dominance. In response, President Biden imposed export controls to limit China’s access to advanced tech. Despite these efforts, TSMC chips were found in Huawei devices in October 2024, highlighting the complexities in the global tech supply chain.

Conclusion

Greenland’s strategic location and its potential to provide valuable resources like rare earth elements are intensifying geopolitical tensions. As climate change makes these resources more accessible, nations are increasingly focused on securing critical territories. Similarly, the U.S. semiconductor industry is shifting with the CHIPS Act and investments from companies like TSMC, which could transform global tech and manufacturing markets, presenting both risks and opportunities for investors.

Investors should monitor geopolitical tensions, advancements in satellite data, and shifts in semiconductor manufacturing. As countries compete for resources and regulatory landscapes evolve due to climate change, new opportunities and risks will emerge in sectors like tech and defense. By adapting to these shifts, investors could thrive and drive growth in the evolving global economy

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