This article is an opinion piece whose contents represent the standpoint of its author and not UPF Lund or The Perspective’s editorial board.
Could rare earth elements be the reason for Trump’s insistence on owning Greenland? What does that mean for the EU? Is Sweden the next Greenland, and how could the EU prevent this? This article examines how rare earth elements have become central to geopolitical power struggles and argues that the EU must act decisively to protect its strategic autonomy. By analyzing China’s dominance, US resource nationalism, and Sweden’s newly discovered deposits, it explores whether Europe is prepared for an emerging era of resource-driven politics.
REEs, which stand for Rare Earth Elements, are key components in permanent magnets used in green energy technologies, such as wind turbines and electric vehicles. They are also found in space and defense technology, as well as in our smartphones. Simply put, REEs play a crucial role in modern, everyday life. REEs are therefore in soaring demand.
The European Union primarily needs REEs to facilitate the Twin Green and Digital Transition. In light of this, access to these elements has become a highly pressing geopolitical and security issue. Naturally, it is not only the EU that is seeking to secure REE supplies. Key international actors also include the United States and China. Furthermore, Sweden may emerge as an increasingly important supplier.
Today, China dominates the REE market with its abundant resources, advanced infrastructure, and state-backed industrial strategy. Both the EU and the US are heavily dependent on China for REE supply, with the US importing over 95% of its REEs from abroad. Previously, China used REEs as a weapon in the US-China Trade War. To reduce its heavy reliance on primarily Chinese imports of REEs and, additionally, to secure its industrial competitiveness and sovereignty, the EU is now focusing on increased domestic production and recycling.
China’s market dominance poses a risk for Sweden, as it allows Beijing to significantly influence price levels. In the past year under the Trump Administration, the US has begun injecting public funds into the mining sector to jump-start domestic production. This indicates that the REE market is increasingly regulated rather than operating under free-market principles. Although only very small amounts of REEs are required for products to function efficiently, mining remains highly costly. Because of this, the introduction of a fixed minimum price by the EU could be highly beneficial for ensuring the economic viability of REE production.
Since January 2023, large deposits containing at least 2 million tons of REEs have been discovered at the Per Geijler Site in Kiruna, Northern Sweden; it is the first such discovery in the EU. Following this, Ebba Busch, the Swedish Minister of Enterprise and Innovation, warned that the US could claim ownership of the Swedish deposits, citing President Donald Trump’s recent outburst about conquering Greenland.
However, the Danish Minister of Foreign Affairs recently offered the US access to the island, although this offer was abruptly rejected by Trump. A possible reason for the rejection could be the presence of REE deposits on Greenland, which the US seeks complete ownership of, as Greenland is thought to hold among the world’s largest REE deposits.
The Swedish state needs an EU permit before starting to mine at the Per Geijer Deposit. This permit could take a very long time to obtain. Furthermore, Sweden’s infrastructure needs to be upgraded to handle increased cargo volumes of freshly mined materials. Given that the Per Geijer Deposit could reduce the EU’s dependence on China for REEs, the EU should address these issues promptly.
An executive order issued by the Trump Administration in April 2025 emphasizes the absolute necessity of REEs for the US economic and national security. To ensure reliable access to REEs, the Administration is aiming to localize production and increase control over REE supply chains to reduce reliance on imports. This, along with an emerging era of American imperialism, can be interpreted as possible threats to Sweden and the EU.
The EU is focusing on supply chain resilience and reducing dependence on external sources, with an emphasis on circular economy, recycling, and resource efficiency. This is primarily driven/achieved by the Critical Raw Minerals Act (CRMA). REEs are being covered in this act as they constitute a specific subset in the EU’s broader category of critical raw minerals. CRMA aims to implement measures that combine market mechanisms to increase investment and support industrial policy in the REE sector.
The growing strategic importance of REEs underscores how access to critical resources has become central to contemporary geopolitics and security. President Trump’s repeated insistence on owning Greenland can plausibly be understood in light of the island’s immense REE deposits, reflecting a broader shift toward resource-driven power politics. This development raises important concerns for both Sweden and the EU, particularly in light of the discovery of the Per Geijer deposits in Kiruna, Sweden.
Sweden’s deposits position it as a potential key supplier within the EU, but they also risk attracting external interest from global powers, namely the US, seeking to secure control over critical supply chains. At the same time, China’s dominance in the REE market and the increasing use of state intervention by the US indicate that REEs are no longer governed by free-market principles alone.
Given the scarcity and high cost of mining REEs, they are also a key component in building our future. Thus, they are in extremely high demand. Wherever they are available, someone will try to mine them. The question is only when. Therefore, the EU needs to act swiftly. By promoting domestic production, recycling, and supply chain resilience, the EU can strengthen its sovereignty. If Sweden’s REE deposits are developed efficiently and supported by the EU, they could play a central role in securing the Twin Green and Digital Transition while ensuring that control over critical resources remains within Europe.
By Victoria Olsson
February 20, 2026
