Ukraine and the United States have reached an economic agreement that will grant American companies access to Ukraine’s rare minerals.
The news was confirmed on Tuesday by three senior Ukrainian officials who spoke on condition of anonymity because they were not authorized to disclose details publicly regarding the matter.
President Trump also announced that the agreement on rare minerals had been reached between the two countries.
Kyiv hopes this agreement will help secure continued military support from the US, which is vital for Ukraine under the current conditions of war. The US administration has yet to give an official response regarding the agreement.
The deal could be signed on Friday during a possible visit by Ukrainian President Volodymyr Zelensky to Washington, where he is expected to meet with President Donald Trump.
The US Has Not Given Clear Security Guarantees
Reports indicate that while the US has expressed willingness to cooperate with Ukraine in the strategic minerals sector, it has not yet provided strong security guarantees for Kyiv, one of Ukraine’s main requests.
President Trump stated on Tuesday that in exchange for the agreement, Ukraine will receive “the right to fight,” but did not confirm whether the US would continue to supply military equipment and ammunition.
Ukraine’s Deputy Prime Minister, Olha Stefanishyna, who led the negotiations, told the Financial Times that the agreement is “only one part of the overall picture.”
Ukraine’s Mineral Wealth
Ukraine is one of the richest countries in the world in terms of natural resources. Its proven mineral reserves are estimated at over 110 billion tons, including around 100 different types of minerals.
According to Forbes Ukraine, the total value of these resources could reach up to 15 trillion dollars.
Among the most important minerals in Ukraine are:
- Lithium – Ukraine’s proven reserves exceed 33 million tons, valued at around 40 billion dollars. These deposits are mainly located in central and eastern Ukraine, including the Donetsk region, which is currently the center of fighting.
- Manganese – Ukraine ranks first in Europe and second in the world for explored manganese reserves, with an estimated value of over 10 billion dollars.
- Graphite – With 245 million tons of reserves, Ukraine has some of the largest deposits of this mineral in Europe, valued at over 35 billion dollars.
- Copper – Copper deposits could reach up to 30 million tons, with a market value exceeding 5 billion dollars.
- Germanium – Ukraine has over 40,000 tons of reserves of this rare metal, with an estimated value of 170 billion dollars.
US Interest in Titanium and Uranium
According to The New York Times, the US also has a special interest in Ukrainian titanium and uranium, two critical minerals for defense and energy industries.
- Titanium – Ukraine could hold up to 20% of the global reserves of titanium ore, a mineral important for building fighter jets and space technology.
- Uranium – With around 270,000 tons of reserves, the market value of this critical mineral exceeds 31 billion dollars.
The Agreement with the US: Profitable for Both Sides
The agreement between the US and Ukraine is expected to have mutual benefits. American companies will gain access to Ukraine’s strategic minerals by investing directly in the mining industry and creating joint ventures. In return, Ukraine will receive support for economic recovery and potentially for security guarantees.
Despite these developments, it remains unclear whether this agreement will result in a strong US commitment to help Ukraine in its fight against Russian aggression.
Critical minerals are the backbone of modern economies and a key factor in the development of advanced technologies. They are essential for producing electric batteries, military technologies, and industrial infrastructure, making them an increasingly strategic element in geopolitics and geo-economics.
The US Wants to Reduce Dependence on China for Rare Earth Minerals
The United States is working on an agreement with Ukraine to secure its mineral resources, aiming to reduce dependence on China, which currently controls 75% of global rare earth deposits, according to the Geological Investment Group.
In December, Beijing halted the export of some rare earth minerals to the US, further strengthening its control over the global market for these strategic resources. This move came after previous restrictions China imposed last year on exports to the US, raising significant concerns in the tech and defense industries.
Ukraine estimates that about 5% of the world’s “critical raw materials” are located within its borders. Therefore, Washington is trying to secure an agreement with Kyiv to guarantee access to these strategic resources, further reducing China’s influence in this sector.
Russia’s Interests in Ukraine’s Rare Minerals
Russia is also a country rich in rare minerals and has strong interests in controlling Ukraine’s natural resources. Moscow aims to establish a price monopoly in collaboration with China, increasing its influence in global markets for strategic minerals.
In a recent development, President Vladimir Putin declared on Tuesday that he is willing to sell these rare minerals to the United States. However, a significant portion of Ukraine’s mineral resources is located in the eastern regions of the country, which are currently under Russian occupation, further complicating the situation.
As rare minerals become increasingly vital for technological development and national defense, the race for control over them is intensifying. With the US seeking to diversify its sources and China and Russia aiming to maintain their dominance, rare minerals are expected to be one of the most important areas of global competition in the coming years.
