The United States and Ukraine signed a major agreement to secure access to key minerals and assist in the reconstruction of Ukraine. The deal, strongly supported by U.S. President Donald Trump, also provides preferential rights to the U.S. in future Ukrainian mineral projects.
What the Deal Covers?
The agreement was signed in Washington following months of hard negotiations. In a final moment’s hesitation, however, U.S. Treasury Secretary Scott Bessent and Ukraine’s First Deputy Prime Minister Yulia Svyrydenko sealed the deal. A photo published on X by the U.S. Treasury dubbed the agreement as a “clear indication of the Trump Administration’s commitment to a free, sovereign, prosperous Ukraine.
Svyrydenko explained that Ukraine maintains sole ownership of its subsoil and mineral assets: “The agreement enabled Ukraine to decide what and where to dig out.” She further pointed out that Ukraine has no debt to the U.S. according to this deal and that it is in conformity with the country’s constitution as well as with its ambitions to join the EU.
Although the agreement refers to American assistance to Ukraine’s air defense systems, Washington has not made concrete security assurances.
Ukraine’s Strategic Mineral Riches
Ukraine is home to reserves of 22 of the 34 strategic minerals identified by the European Union. These include rare earths such as lanthanum, cerium, neodymium, erbium, yttrium, and scandium. These are crucial for the production of electric vehicles, wind farms, cellphones, missile defense systems, and lasers.
Among Europe’s biggest proven reserves of lithium, totaling 500,000 tons, which go into EV batteries, ceramics, and glass, Ukraine’s is found by the State Geological Service. Titanium deposits are situated predominantly in the northwest and center of the country, with graphite deposits that represent 20% of world reserves located in central and western Ukraine.
The World Economic Forum identifies Ukraine as a potential source of lithium, beryllium, manganese, gallium, zirconium, fluorite, apatite, and nickel. Yet, at present, there are no commercially producing rare earth mines in Ukraine, and global production is controlled by China.
Territorial Losses and Resource Control
The current conflict has dramatically cut down on Ukraine’s access to its resources. Russia now occupies around 20% of Ukrainian territory. The east Ukrainian coal provinces, critical for the steel economy, have to a large extent come under occupation by Russian forces. Up to early 2024, local think-tanks estimated that 40% of Ukraine’s metal resources had been captured.
Russia has also captured at least two of Ukraine’s lithium deposits in Donetsk and Zaporizhzhia, although the central Kyrovohrad region is still in Kyiv’s hands.
Economic Opportunities and Challenges
As war rages, Ukraine views favorable investment opportunities for the critical minerals industry. According to Oleksiy Sobolev, the First Deputy Economy Minister, who spoke earlier this year, the government is jointly developing mineral development projects with its Western allies such as the U.S., the UK, France, and Italy, with up to $12–15 billion investment potential in 2033.
The State Geological Service revealed plans to bring about 100 locations into preparedness for joint licensing and development but provided no additional details.
Still, some hurdles persist. Investors point to regulatory complexity, restricted access to geologic data, and difficulty acquiring land. Even though Ukraine provides an educated, low-cost workforce and adequate infrastructure, project development will likely take years and need large initial investment.
