Arctic Rare Earths: The New Geopolitical Battleground (And Why Your Portfolio Should Care)

Here’s the thing—rare earth metals aren’t just fancy buzzwords anymore. They’re literally the backbone of defense systems, EVs, semiconductors, and renewable energy. And right now, there’s a massive geopolitical chess match happening over who controls them.

The Arctic is Melting, and That’s Actually a Strategic Opportunity

For decades, Arctic rare earth mining was impossible due to ice. But climate change is changing the game—literally. As the ice melts, Greenland is becoming the new frontier for critical minerals, and everyone from Trump to Canada is circling it like sharks smelling blood.

Why? Because China has dominated rare earth supply for years, and Western economies are finally sick of the dependency. When China throttled exports to the U.S., Trump didn’t waste time—he immediately cut deals with Australia, Malaysia, Cambodia, and Japan to diversify supply chains. Classic move.

According to Marc Lanteigne at the Arctic University of Norway, Greenland sits on an absolute treasure trove of rare earths and strategic metals. And with Trump back in office openly talking about controlling Greenland? Interest in Arctic mining investments has exploded.

Two ETFs Leading the Charge

VanEck Rare Earth/Strategic Metals (REMX) – The heavyweight contender

• Tracks 29 rare earth and strategic metal stocks
• $1.5B in assets, 0.58% fee
• Geographic mix: China 28.3%, Australia 24.4%, USA 19.1%
• Performance: +61.76% (3-month), +45.14% (1-year)
• Trading volume: ~1.5M shares/month – plenty of liquidity

Sprott Critical Materials ETF (SETM) – The diversified play

• Broader basket of 87 securities
• $163.4M in assets, 0.65% fee
• Geographic focus: Canada 37.7%, Australia 25.7%, USA 19.8%
• 15.61% direct exposure to rare earth equities
• Performance: +44.34% (3-month), +41.99% (1-year)
• Trading volume: ~182K shares/month – smaller but still liquid

The Real Story Here

This isn’t just about metals. It’s about supply chain independence, geopolitical positioning, and the race to decouple from Beijing. As Arctic resources become accessible and tensions simmer, capital will flood into anyone who can supply alternatives to China. Both ETFs are positioned to ride this wave, but REMX has the higher momentum while SETM offers safer geographic diversification.

The question isn’t whether this sector grows—it’s whether you want exposure or not.