President Donald Trump renewed his calls for U.S. control of Greenland, describing the territory as vital to American national security and reiterating that "anything less than that is unacceptable." The statement, posted on Truth Social on January 14, 2026, came just hours before high-level talks in Washington between U.S., Danish, and Greenlandic officials.
According to CNN on January 14, Trump stated that U.S. control of Greenland would bolster NATO's strength, emphasizing, "NATO becomes far more formidable and effective with Greenland in the hands of the United States." He also linked Greenland to the Pentagon's planned "Golden Dome" missile defense system, calling the island essential to its development.
The meeting at the White House included Vice President JD Vance, Secretary of State Marco Rubio, Danish Foreign Minister Lars Løkke Rasmussen, and Greenland Foreign Minister Vivian Motzfeldt. Rasmussen described the talks as "frank and constructive" but acknowledged a fundamental disagreement remained. "Ideas that would not respect territorial integrity of the Kingdom of Denmark and the right of self-determination of the Greenlandic people are, of course, totally unacceptable," he said.
In a January 14 ABC News report, Trump maintained his position from the Oval Office following the meeting. "We need Greenland for national security," he told reporters. "We're doing the Golden Dome. We're doing a lot of things. And we really need it."
Military Options and Historical Context
While Trump expressed a preference for diplomacy, he has not ruled out alternative strategies. According to Al Jazeera on January 10, Trump told a meeting of energy executives, "If we don't do it the easy way, we're going to do it the hard way." Discussions have reportedly included potential payments to Greenland's population, ranging from US$10,000 to US$100,000 per person, and the creation of a Compact of Free Association, a structure that allows for sovereignty-sharing similar to agreements the U.S. holds with Pacific island nations.
Al Jazeera also noted that the U.S. already operates the Pituffik Space Base in northwestern Greenland under a 1951 agreement, giving the American military rights to establish further "defense areas" if needed. Trump has pointed to this presence as a foundation for expanding U.S. control.
NPR reported on January 7 that the White House reaffirmed that military action remained "always an option." Press Secretary Karoline Leavitt stated, "President Trump has made it well known that acquiring Greenland is a national security priority... utilizing the U.S. military is always an option at the commander in chief's disposal."
Strategic Value and Resource Wealth: Why the U.S. Wants Greenland
President Trump has cited national security as the reason for acquiring Greenland, but the move is also driven by the island's rare earth mineral potential and its pivotal Arctic location. According to the U.S. Geological Survey, noted by NPR, Greenland holds an estimated 1.5 million metric tons of rare earth elements, including high-demand materials like dysprosium and neodymium. The Tanbreez and Kvanefjeld projects are two of the world's largest deposits. While Kvanefjeld has been stalled by a 2021 uranium mining ban, Tanbreez received a 30-year license in 2025 and attracted interest from the U.S. Export-Import Bank for a potential US$120 million investment.
The strategic location of Greenland, between North America and Russia, has taken on added significance as Arctic ice melts and shipping lanes open. In a PBS NewsHour segment aired January 14, retired Dutch Admiral Rob Bauer noted Greenland's geography "in between Russia and the United States" and emphasized the need for NATO unity. Despite Trump's claims about growing foreign threats, Danish intelligence officials refuted recent suggestions of Chinese naval activity near Greenland. Foreign Minister Lars Løkke Rasmussen stated, "It is not a true narrative that we have Chinese warships all around the place," adding that the greater risk comes from tensions within NATO.
Infrastructure and environmental challenges have limited mining activity so far. Greenland currently has only two operating mines, and uranium mining remains banned. Nonetheless, international interest is growing. The EU has designated key graphite projects as strategic, while the U.S. and its allies continue to explore investment in local infrastructure and processing.
Investor Skepticism and Long-Term Realities
Despite the strategic and resource arguments behind the U.S. push for Greenland, not everyone sees the move as viable. In a January 16 commentary, investment strategist Frank Holmes questioned the proposed US$700 billion price tag for the island, noting that the cost would exceed half of the entire U.S. Department of Defense's 2024 budget. Holmes cited a YouGov poll showing limited public support in the U.S., with just 13% of respondents favoring financial incentives for Greenlanders and only 8% backing military action.
While acknowledging Greenland's value, Holmes highlighted the challenges of developing its vast resources. The country has fewer than 100 miles of roads, minimal energy infrastructure, and a uranium mining ban that has slowed progress at key sites like Kvanefjeld. Holmes likened Greenland to Venezuela, another region often discussed as a quick-win resource play, emphasizing that both would require billions in investment and long timelines before any return could be realized.
He also pointed to failed attempts by China to establish a foothold in Greenland, including infrastructure bids that were ultimately blocked by Denmark or the U.S. These precedents, Holmes argued, suggest that control of the island is unlikely to change hands quickly or quietly. However, he noted that recent discussions may be part of a larger "Donroe Doctrine" strategy, referencing the Trump administration's restated version of the Monroe Doctrine, which emphasizes U.S. dominance in the Western Hemisphere.
Denmark and Allies Push Back Against US Greenland Ambitions
Denmark has maintained firm opposition to President Trump's push to take control of Greenland. On January 14, CNBC reported that Greenland Prime Minister Jens-Frederik Nielsen stated, "We choose Denmark," while Danish Prime Minister Mette Frederiksen warned that any U.S. use of military force would mark "the end of NATO." The same day, a White House official confirmed that Secretary of State Marco Rubio had been tasked with drafting a proposal to purchase the island. According to NBC News, internal cost estimates placed the potential price at up to US$700 billion.
As tensions escalated, Denmark announced an expanded military presence in Greenland in cooperation with NATO allies. European nations, including France, Germany, Sweden, Norway, Finland, and the Netherlands, sent small numbers of military personnel to participate in joint exercises. While such deployments are routine, their timing underscored a shared stance in support of Denmark.
Danish Defense Minister Troels Lund Poulsen called a U.S. attack scenario "completely hypothetical," but emphasized that Denmark would invest US$13.8 billion in Arctic defense given "the serious security situation." NATO analysts and European officials have cautioned that even without direct military conflict, such a move by the U.S. could politically fracture the alliance.
Writing for the Atlantic Council on January 6, Anna Wieslander warned that Trump's Greenland strategy may represent NATO's "darkest hour," undermining the foundation of collective defense. She noted that while Denmark has invited increased U.S. troop presence under a 1951 treaty, Trump has sought outright control, a move that disregards international law and the NATO charter. Wieslander argued that a forced annexation would effectively destroy Article 5 and urged European leaders and U.S. lawmakers to intervene diplomatically to prevent NATO's collapse.
This concern was echoed in financial circles. On January 8, Damir Tokic wrote in Seeking Alpha that a unilateral U.S. move on Greenland could be a "black swan event" for global markets, triggering a collapse of NATO, a worldwide recession, and a flight to gold as a safe-haven asset. Tokic warned that such a scenario would shake confidence in the U.S. dollar and Treasury markets, potentially destabilizing the global economic order alongside the transatlantic alliance.
The Economic and Stock Market Impact
Investor sentiment shifted amid escalating geopolitical tensions surrounding President Donald Trump's renewed push to acquire Greenland, including rhetoric about military options and broader defense spending priorities. According to Reuters via Investing.com, investors increased allocations to traditional safe‑haven assets such as gold, which jumped more than 4% and reached record levels as markets reacted to heightened perceived risk. European defense stocks also posted significant weekly gains, with defense sector names including land systems and aerospace manufacturers rallying as geopolitical risk became a major factor for positioning.
Financial news outlets reported that U.S. defense stocks surged after Trump called for a sharp increase in military spending. Bloomberg noted that major contractors extended their strong performance as markets priced in proposed budget increases. CNBC reported that Trump's proposal included a defense budget of up to US$1.5 trillion by 2027 — nearly 50% above current levels. Shares of Northrop Grumman Corp. (NOC:NYSE) and Lockheed Martin Corp. (LMT:NYSE) saw notable increases following the announcement. These moves reflected a broader rotation out of growth sectors and into defense equities, consistent with heightened global security concerns.
Defensive positioning extended beyond equities to fixed income and currency markets, with analysts observing that a military escalation could typically prompt flows into U.S. Treasuries and the dollar. However, those shifts had yet to become sustained trends.
ABN AMRO assessed the potential economic fallout of Trump's Greenland ambitions and pointed to rising geopolitical risk in U.S.–Europe relations. The report highlighted uncertainty around possible tariffs and legal challenges, while also acknowledging that these developments were unfolding amid broader macroeconomic tensions between transatlantic partners.
CNN Business suggested that despite simultaneous U.S. actions in Greenland and Venezuela, overall equity markets remained resilient. The Dow was still seen as having potential to hit 50,000, driven by defense, energy, and infrastructure plays. Analysts noted that investors had begun to focus on sectors aligned with strategic government priorities and away from areas vulnerable to political disruption.
Rare Earth Stocks Rally as Strategic Focus Intensifies
As tensions over Greenland's status deepened, rare earth stocks emerged as one of the more resilient corners of the market, buoyed by investor bets on supply chain reshoring and increased U.S. government support. On January 7, Tom Jones reported that shares of Rare Earth stocks all saw early gains after a White House statement confirmed that "a range of options," including military action, was being considered in pursuit of acquiring Greenland. The White House called the island a "national security priority," citing its rare earth deposits as vital to the U.S. industrial and defense base.
Among the most directly impacted equities was Critical Metals, whose Tanbreez project is located in southern Greenland. The stock surged over 10% in early trading, building on a 26% gain the previous day. Reports have suggested that the Trump administration has expressed interest in potentially acquiring a stake in the company due to its diverse rare earth portfolio.
Investor interest has also turned toward USA Rare Earth, a pre-revenue company considered by some analysts to be the next high-upside candidate in the rare earth sector. According to Caroline Kong on December 24, 2025, the company is viewed as a potential recipient of Department of Defense support through equity investment and long-term supply contracts. While its valuation is speculative, analysts believe a successful government partnership could replicate the performance of MP Materials Corp. (MP:NYSE), which surged nearly 250% last year after securing its own deal with the DoD.
Thomas Niel of The Motley Fool echoed that sentiment on December 24, writing that while MP Materials may already be fully valued, USA Rare Earth could offer outsized returns in 2026 if it locks in official backing. The company's CEO confirmed ongoing communication with the Trump administration, fueling speculation of a near-term agreement.
Taken together, rare earth equities have become a proxy trade for the U.S. drive toward strategic autonomy in critical minerals. As diplomatic pressure mounts and military rhetoric intensifies, investors have sought exposure to companies seen as early beneficiaries of a national push to develop non-Chinese rare earth supply chains — particularly those with assets linked to Greenland or existing relationships with the U.S. government.
USA Rare Earth Inc.
USA Rare Earth Inc. (USAR:NASDAQ) has recently expanded its downstream capabilities in Europe with the launch of a new rare earth metal and alloy facility in Lacq, France, through its subsidiary LCM Europe. The site, which will be co-located with Carester's oxide processing plant, is expected to produce up to 3,750 metric tons of product per year. According to the company, the facility will support the regional production of key rare earth metals for use in magnets across defense, electric vehicle, and clean energy applications.
Streetwise Ownership Overview*The French government has committed financial support for the Lacq site, offering up to 45% of eligible equipment costs as well as potential site infrastructure funding of up to €130 million. Additional assistance has been allocated toward talent recruitment, training, and integration. USA Rare Earth stated that the facility aims to improve regional supply chain capabilities and reduce dependence on overseas processing.
In the United States, the company is preparing to commission its Stillwater, Oklahoma magnet manufacturing facility, with an initial annual capacity target of 5,000 metric tons. The company noted that this facility will manufacture finished magnets intended for industries including defense, robotics, and data infrastructure. Pilot-scale testing has also begun on a rare earth recycling flow sheet, which the company says could support end-of-life magnet recovery and domestic circular supply capabilities.
USA Rare Earth also controls the Round Top deposit in Texas, which contains a mix of light and heavy rare earth elements, as well as other critical minerals. Bench- and pilot-scale testing has been completed, and the company is advancing Round Top toward pre-feasibility. Complementary processing capabilities are being developed in Colorado and other U.S. jurisdictions to support this initiative.
The company completed its acquisition of Less Common Metals (LCM) in late 2025. LCM operates production facilities in the United Kingdom and has been producing rare earth metals and alloys for over 30 years. USA Rare Earth reported plans to expand strip casting capacity to 20,000 metric tons over the next decade across its U.K. and France operations.
On November 6, ROTH Capital’s Suji Desilva maintained a Buy rating on USA Rare Earth Inc. with a revised 12-month price target of US$25, down from US$40, reflecting changes in market valuations while reaffirming confidence in the company’s long-term potential. Desilva noted that USAR remains on track to begin magnet production at its Stillwater, Oklahoma, facility in early 2026, targeting a first-line capacity of 1,200 metric tons per annum. With US$400 million in cash and no debt, the company is advancing key infrastructure and government engagement initiatives, including integration of its U.K.-based Less Common Metals acquisition. ROTH emphasized USAR's end-to-end rare earth strategy, highlighting progress at the Round Top deposit and forecasting 2026 revenue of US$40 million, rising to US$150 million in 2027. The updated valuation implies an EV/sales multiple of ~55x for 2026 and ~15x for 2027, with growth expectations tied to magnet demand from industrial, defense, and clean energy sectors.
In a newsletter on December 19, market commentator Shad Marquitz identified USA Rare Earth Inc. among several critical minerals stocks that had sold off earlier in the year and could attract investor interest during tax‑loss selling season. Marquitz noted that stocks in rare earths and other strategic materials had been "left for dead as the media assumed everything was going back to normal," but argued that the recent downturn had created opportunities for long‑term accumulation in companies with foundational assets.
In a January 16 article for The Motley Fool, Reuben Gregg Brewer highlighted both the promise and risks associated with USA Rare Earth Inc., noting the company's ambition to build a full rare earth value chain through assets like the Less Common Metals processing facility and the planned Round Top mine. While processing operations and the Oklahoma magnet plant are advancing, Brewer warned that commercial mining is not expected until late 2028. With a post-Q3 2025 cash balance of US$400 million, the company may still face delays and cost overruns before it becomes sustainably profitable. Brewer described USAR as a "huge bet" best suited for aggressive investors.
1In terms of ownership, management, and insiders hold 0.83% of USA Rare Earth. Strategic entities hold 12.47% and Institutions hold 29.50% with Alyeska Investment Group holding the most with 9.20% and Bayshore Capital Advisors with 5.95%.
The company has 139.18 million shares outstanding, a market cap of US$2.4 billion, and a 52-week trading range of US$5.56 to US$43.98.
Defense Stocks Rise on Arctic Tensions and Budget Optimism
Defense stocks across both U.S. and European markets continued to show resilience as President Trump's rhetoric around Greenland and rising global tensions reinforced the sector's importance in investor portfolios. On January 8, Loredana Muharremi wrote for Morningstar that European defense equities advanced after Trump proposed a roughly 66% increase in the 2027 U.S. defense budget. Muharremi noted that while major U.S. primes would be the primary beneficiaries, European firms with U.S. exposure — such as BAE Systems plc (BAESY), Leonardo S.p.a. (LDO.MI), and Rheinmetall — stood to gain from increased procurement and industrial base diversification.
The strategic significance of Greenland was also seen as a catalyst for reenergizing defense planning around the Arctic and North Atlantic. Muharremi suggested the elevated geopolitical risk could accelerate joint procurement efforts and promote further integration of Europe's defense industrial base. Despite skepticism that military action in Greenland will materialize, the posture has nonetheless supported what she described as a broader "defense supercycle," with structural upside potential for companies linked to air defense, sensors, and land systems.
Investor interest in specific equities has already materialized. In a January 8 analysis for Yahoo Finance, Ebube Jones highlighted Saab AB and Rheinmetall as key gainers in recent trading sessions. Saab, which specializes in advanced air defense and surveillance systems, had climbed 20% year-to-date and 229% over the prior 12 months. Rheinmetall, with a focus on armor and ammunition, had also surged amid expectations that European nations would increase defense budgets in response to U.S. unpredictability.
These gains were further supported by Trump's recent Venezuela operation and continued messaging about Arctic dominance, which pushed NATO defense planning back into the spotlight. According to Jones, investors are beginning to treat the Arctic-Caribbean corridor as a new geopolitical axis, driving demand for defense exposure across both sides of the Atlantic.
Rheinmetall AG
Rheinmetall AG (RNMBY:OCTMKTS) continues to advance major defense and mobility programs in Europe and the United Kingdom, including its development of the Challenger 3 Main Battle Tank and its role in remote-operated rail systems. In January, Rheinmetall BAE Systems Land (RBSL), a joint venture between Rheinmetall and BAE Systems, announced the first successful crewed live firing of Challenger 3. Conducted at a UK Ministry of Defence training center, the test marked the first UK-based live firing of a newly developed main battle tank in over 30 years. The Challenger 3 features a 120mm L55A1 smoothbore cannon and is designed to deploy kinetic energy anti-tank rounds as well as programmable multipurpose ammunition. The tank is being delivered under an £800 million contract for 148 modernized vehicles, all produced at RBSL's Telford factory. This effort supports 300 jobs within RBSL and another 450 across the UK supply chain, including a majority of SMEs.
According to Rheinmetall and British Army officials, this milestone is part of a phased assurance program, which began with remote operation and has progressed to crewed live testing. The vehicle is expected to continue trials in 2026 as it moves toward full integration into the UK's armored fleet modernization. Project leaders emphasized the significance of safety validation and collaboration with the Ministry of Defence in reaching this phase. Challenger 3 is positioned as a cornerstone of the UK's future land defense capability, with further upgrades in lethality, survivability, and digital systems.
In parallel with its defense projects, Rheinmetall is also contributing to a new rail initiative through its subsidiary MIRA. The company is participating in RemODtrAIn, a research project backed by the European Union and Germany's Federal Ministry for Economic Affairs and Energy. The goal is to develop a secure, modular system for remote train operation (RTO), using 5G technology and artificial intelligence-based obstacle detection. Testing is underway on an ICE 4 train in Cologne and within the Berlin S-Bahn network. Rheinmetall's MIRA division is supplying key components, including a standardized control panel, a compact vehicle-mounted teleoperation kit, and a cloud-based fleet management system. The solution is intended for use during train dispatch, delivery, and stabling activities, particularly where driver shortages are an issue.
The RemODtrAIn platform is being designed as both a new-build and retrofit solution, capable of scaling across large train fleets. Rheinmetall's system includes safety-certified interfaces, high-availability communications, and standardized operator controls to facilitate flexible vehicle operation across different train types. Company officials say this effort reflects a transfer of Rheinmetall's core mobility and system safety expertise from defense to civilian infrastructure. The €17 million project aims to increase efficiency, reduce staff workload, and support digital modernization across European rail operations.
Rheinmetall AG, based in Düsseldorf, is a publicly traded company with operations in both defense and civilian markets. It remains a major supplier of military systems and vehicle technologies while investing in emerging industrial innovation. The company has committed to achieving CO₂ neutrality by 2035 and continues to align its R&D and manufacturing strategies with both national security priorities and broader sustainability objectives.
In a January 20 article, Investing.com reported that analyst Adrien Rabier of Bernstein gave the company a price target of €2,000, and reiterated its Outperform rating on the company. The report noted that Rabier was impressed by the company's returns in 2025, with the stock showing a 212% return.
1In terms of ownership, 1.68% of Rheinmetall AG is held by management and insiders. Institutions hold 45.69% with BlackRock Institutional Trust holding the most with 6.92%, followed by UBS Asset Management (UK) with 3.25%, and The Vanguard Group with 3.22%. The rest is retail.
The company has 45.88 million outstanding shares, a market capitalization of €6721.9 billion, and a 52-week trading range of €672.00 to €2,008.00.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
