The Strategic Minerals In Ukraine And The Trump’s Deal
Ukraine, an Eastern European nation and a war-torn zone, is known for its significant deposits of rare earth minerals. In 2022, the Russian-language service of the UN News reported that approximately 5% of the world’s rare earth reserves are located in Ukraine.
On Friday, following a heated exchange with former U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy signed a deal in Washington granting the United States access to Ukraine’s vast reserves of critical and rare earth minerals.
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According to Ukraine’s Deputy Minister of Environmental Protection and Natural Resources, Svetlana Grinchuk, about 5% of the world’s critical raw materials are found in Ukraine. This information was disclosed in 2022 during a UN Economic Commission for Europe (UNECE) meeting, before Russia’s full-scale invasion of Ukraine.
Grinchuk highlighted that Ukraine is a treasure trove of lithium, an essential mineral for renewable energy storage. According to a report by the National Academy of Sciences of Ukraine, the country’s lithium reserves amount to approximately 500,000 tons. However, two major lithium-rich sites, Shevchenkivske (Donetsk) and Kruta Balka (Zaporizhzhia), are currently in conflict zones.
“Lithium, due to its high energy storage capacity per unit weight, has become indispensable in producing electric vehicle (EV) batteries. Thus, support and cooperation in reclaiming Ukrainian territory will accelerate and expand access to critical raw materials for both Ukraine and its UNECE partners,” Grinchuk stated in 2022.
However, the most resource-rich areas in Ukraine are located in the east, many of which remain under Russian control. Losing access to these reserves would not only damage Ukraine’s economy but also disrupt global supply chains, particularly in the high-tech and defense sectors.
Despite the ongoing war, Ukraine’s mining sector remains crucial to its economy, with operations continuing in safer regions and growing international interest in securing long-term investments.
What minerals does Ukraine have?
The country has 19m tonnes of proven reserves of graphite, which the Ukranian geological survey state agency says makes the nation one of the top five leading countries for the supply of the minerals.
Ukraine has 7% of Europe’s supplies of titanium, a lightweight metal used in the construction of everything from aeroplanes to power stations.
The country is also known for the lithium deposits, a key component in current batteries. Other elements include uranium and beryllium which are both crucial for nuclear weapons and reactors.
Deposits of copper, lead, zinc, silver, nickel, cobalt and manganese are also significant.
The rare earth metals found in the region which belongs to group 17 are used to produce weapons, wind turbines, electronics and other products vital in the modern world.
Why Does the US Want Ukraine’s Minerals?
Critical minerals form the foundation of the 21st-century economy, being vital for renewable energy, military applications, and industrial infrastructure. They also play an increasingly strategic role in global geopolitics and geoeconomics.
The U.S. is pursuing this deal as part of its effort to reduce dependence on China, which controls 75% of the world’s rare earth supply.
In December 2023, China banned the export of certain rare earth minerals to the U.S., following previous export restrictions imposed in 2022. This move intensified the U.S. search for alternative suppliers, making Ukraine’s vast reserves a strategic interest.
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What’s in the US-Ukraine Deal?
The initial proposal suggested that Ukraine would use its mineral resources to repay the $500 billion in U.S. military aid. However, Zelensky claimed that the US military assistance has totalled nowhere closer to US $500 billion. The deal outlines the following proposals as well:
Ukraine will contribute 50 percent of revenues from state-owned resources to the joint fund. However, It is unclear where the remaining 50 percent will come from, and how much control the US will wield over the fund. The US will commit to supporting Ukraine’s long-term economic stability and prosperity and it will also support Ukarine’s effort to secure lasting peace but will not offer any direct security guarantees.
