(Un)Welcomed Intrusion
Submitted by Atlas Indicators Investment Advisors on January 31st, 2025
Greenland has been subjected to an intrusion. About a billion years ago a tectonic plate was ripped away from a second which allowed magma to flow toward the surface but be sealed by what is now the south-west portion of the autonomous territory of the Kingdom of Denmark. As the magma cooled, a giant rock developed containing 30 of the modern economy’s most desired raw materials.
Intrusions aren’t rare, but they also aren’t all the same. For instance, California is home to many of them. The Sierra Nevada’s feature large granite intrusions. But granite is pretty common, so even though it is widely used in construction and architecture, it doesn’t carry the same value as the aforementioned special 30.
According to this report from the Congressional Research Service, there are 50 critical minerals and China produces the majority of them now known as Rare Earth Elements. Not only are they essential to modern life, but these elements are also subject to supply risks. Semiconductors, for instance, need materials like silicon, gallium, and germanium. Batteries require stuff like lithium, cobalt, and nickel. While not all of these are found in Greenland’s intrusion, most are and other parts of the Danish territory have relatively large quantities of 13 other minerals on the critical list.
This intrusion is putting Greenland into American headlines. Much is made of its strategic location, but there are other significant factors at play. For instance, the Economist reports a firm funded by Bill Gates and Jeff Bezos is already developing extraction sites for cobalt and copper. Cobalt is used in the production of lithium-ion batteries, and copper has been widely used in electrical circuits since the early 19th century.
As Greenland’s mineral wealth becomes more apparent, the geopolitical and economic implications are significant. The potential for Greenland to become a major player in the global supply chain of critical minerals is immense. This newfound attention could lead to increased investment and development in the region, potentially transforming Greenland’s economy and its role on the world stage.