The European Union is launching a new graphite extraction project in Greenland as part of a broader strategy to reduce its dependency on external powers for critical raw materials needed in green technologies. The initiative is one of 13 mining projects that the EU plans to support with a total investment of €5.5 billion.
Greenland’s graphite for Europe’s green transition
According to the European Commission, the new Greenlandic project is designed to secure a steady supply of graphite, a soft mineral used primarily in electric vehicle (EV) batteries and other energy storage technologies. Graphite is currently dominated by Chinese production, making diversification a geopolitical priority for the EU.
While Greenland is not part of the EU, it holds significant reserves of critical minerals, including rare earths and graphite. The island’s strategic location and untapped resources have attracted growing interest from global powers. By investing in Greenland, the EU aims to strengthen its supply chains while maintaining influence in the Arctic region.
EU thirteen mining projects in eleven countries
The Greenland graphite initiative is part of a package of 13 mining projects identified by the EU as essential to its raw materials strategy. Ten of these projects are directly related to materials necessary for the production of EVs and battery storage systems.
Besides Greenland, the planned projects span across Norway, Canada, Kazakhstan, Serbia, Ukraine, Zambia, Brazil, Madagascar, Malawi, South Africa, and the UK, with one additional project in New Caledonia, a French overseas territory. This global spread reflects the EU’s ambition to diversify its sources and reduce strategic vulnerabilities.
EU funding and strategic goals
The €5.5 billion investment package is expected to be channeled through public-private partnerships, in coordination with host countries and companies operating on the ground. The EU’s raw materials strategy, updated in 2023, emphasizes sustainability, responsible sourcing, and long-term resilience.
By supporting these extraction projects, the EU seeks not only to reduce its reliance on countries like China and Russia, but also to position itself as a key player in the global green economy. The Commission stresses that all projects will be subject to strict environmental standards and partnerships with local communities.
Arctic geopolitics and implications
The decision to develop a graphite mine in Greenland comes amid growing international interest in the Arctic’s mineral wealth. The EU’s involvement may be seen as a counterweight to increasing Chinese and USA activity in the region.
However, mining in Greenland has long been a contested issue. Previous proposals have sparked public debate and political tensions, especially concerning environmental protection and Indigenous rights. As the EU moves forward with the graphite project, it will likely face scrutiny over its commitments to sustainability and local engagement.
