Greenland Security Pact Boosts Rare Earth Supply Diversification

CHARLOTTE, N.C., Sept. 22, 2026 /CourierPR/ -- On Friday, the United States, Denmark, and Greenland announced a security agreement that restricts investments from adversaries in Greenland's critical minerals and mining sectors. This pact, which is expected to be signed during this week's UN General Assembly, is seen as a significant step in diversifying the global supply chain for rare earth elements, particularly neodymium and praseodymium (NdPr), which are crucial for the production of electric vehicle motors, wind turbines, and other high-tech applications.

Greenland Mines Ltd. (Nasdaq: GRML), a Western-aligned critical-minerals developer, welcomed the agreement, stating that it underscores the strategic importance of Greenland in the global supply chain. The company is advancing its Sarfartoq neodymium-praseodymium project on the west coast of Greenland. In a move to expand its footprint, Greenland Mines has applied for a new exploration license covering approximately 262 km² immediately east of its existing Sarfartoq license, MEL 2020-32. If granted, this application would more than double the company's controlled area to about 454 km².

The company's initial assessment for the ST1 deposit at Sarfartoq includes a high-case pre-tax net present value (NPV) of approximately $2.05 billion. According to the company, the planned annual NdPr oxide production from ST1 would represent approximately 34% of all NdPr oxide currently refined outside China at 2025 consumption levels. NdPr account for approximately 84% of the modeled in-concentrate basket value, highlighting the strategic importance of these deposits.

The announcement comes at a time when China controls more than 90% of the global magnet rare earth refining and a similar share of finished magnet production. This dominance has led to increased geopolitical tensions and a push for diversification. S&P Global's NdPr market work shows NdPr oxide moving from roughly US$74 per kilogram in December 2025 to around US$120 per kilogram by mid-2026, driven by trade actions, stockpile planning, and Chinese export restrictions.

Greenland Mines' Sarfartoq project is part of a broader rare earth district in West Greenland. The company has delivered a new Mineral Resource Estimate for ST1 under the SEC's Regulation S-K 1300. Under a hybrid open-pit and underground scenario, the deposit comprises 6.9 million tons of Indicated Mineral Resources grading 1.60% total rare earth oxides (TREO) and 5.3 million tons of Inferred Mineral Resources grading 0.96% TREO, or roughly 12.2 million tons grading 1.32% TREO on a combined basis.

The company's strategy is straightforward: advance ST1 toward development, unlock the value of the less-developed known ST zones, and systematically test the wider district for the next rare earth discovery. Other known zones, including ST40, ST19, ST24, ST31, and ST43, are substantially less developed and are not part of the current resource estimate or its economics.

The trading reaction to the announcement has been dramatic. Shares of Greenland Mines rose more than 200% on Monday as Greenland-linked names moved together, and continued to trade actively in Tuesday's session. While the agreement itself has not been signed or ratified, it is expected to change who may invest in Greenland's minerals, making those deposits more clearly available to allied supply chains.