Exploring Ukraine’s Strategic Minerals Deal with the United States: The What, Why, and How
Getty Images Ukraine boasts substantial supplies of key minerals, although some are now situated within Russian-occupied territory. Kyiv has finalized the outline of a major deal that would grant the United States access to its mineral deposits, according to a senior official from Kyiv who spoke with the BBC.
Kyiv is under increasing pressure from Washington to sign this agreement, which caused friction between US President Donald Trump and Ukrainian President Volodymyr Zelensky last week. On Tuesday, Trump expressed his expectation that Zelensky would travel to Washington in the near future to ink the deal. While not confirming a finalized agreement, Trump stated that the pact would empower Ukraine with “the right to fight on.”
Back in September, when Zelensky initially presented this proposal as part of what he called his “victory plan” during US presidential candidate debates, it aimed at offering tangible reasons for continued American support. Olga Stefanishyna, the Ukrainian deputy prime minister responsible for European and Euro-Atlantic integration, revealed on Monday that negotiations have been “very constructive,” with nearly all crucial details finalized.
What Minerals Does Ukraine Have?
Kyiv estimates that approximately 5% of the world’s critical raw materials are found within its borders. This includes about 19 million tonnes of proven graphite reserves, making Ukraine one of the top five global producers according to Ukrainian Geological Survey data. Graphite is used in manufacturing batteries for electric vehicles.
Ukraine also holds a significant third of all European lithium deposits, which are crucial components in modern batteries. Additionally, prior to the Russian invasion, Ukraine supplied 7% of worldwide titanium production—a lightweight metal employed across various sectors including aircraft and power plants. Furthermore, the country possesses substantial rare earth minerals.
Rare Earth Metals
These consist of a group of 17 elements used in producing weapons, wind turbines, electronics, and essential modern products. Some mineral deposits have been seized by Russia; Ukraine’s economy minister Yulia Svyrydenko noted that resources valued at $350bn remain under Russian occupation today.
Why Does the US Want Them?
Critical minerals are foundational to the 21st-century economy, according to Dr. Robert Muggah of SecDev, a geopolitical risk consultancy based in Canada. They play pivotal roles in renewable energy, military applications, and industrial development.
Dr. Muggah highlighted that these resources provide strategic advantages: they enable nations like the US to sustain technological dominance while securing vital supply chains for their industries.
Potential Joint Exploration
Iryna Suprun, CEO of Geological Investment Group—a mining advisory firm based in Ukraine—argued that joint exploration with American investors could significantly benefit Kyiv’s economy. She stressed that such collaborations would bring advanced technologies and much-needed capital to the Ukrainian mining sector.
She emphasized that this partnership could lead to more job opportunities, tax revenues, and income from mineral development efforts within the country.
Future Developments
The finalized agreement is expected to serve as a stepping stone for enhanced economic cooperation between Kyiv and Washington. However, details surrounding security guarantees and potential revenue splits remain crucial points of discussion in upcoming negotiations.
As both nations work towards finalizing the deal, it remains clear that these mineral resources hold immense strategic significance for their respective economies and international standing.
