US President Donald Trump is seeking a contract to secure Ukraine’s rare earth minerals in exchange for US aid to fight Russia. Ukrainian President Voldimir Zelenki reportedly responded actively to the proposal.
Trump highlighted the need for “equalization” by citing nearly US$300 billion in US support. “Ukraine has incredibly valuable rare earths,” he said, hinting at the arrangements for potential resource targets.
“We are trying to attack deals that Ukraine secures what we are giving them with rare earths and other things,” he adds, blurring the definition of “other things.” . “We’re going to stop that ridiculous war,” he added.
Zelensky responds, showing openness to “investment” from allies, as long as it strengthens Ukraine’s battle with Russia. He confirmed that discussions about rare earth minerals began several months ago. “We talked about this in September when we met with President Trump,” he revealed.
Interestingly, Ukrainian media previously suggested that the idea may have originated from Kiev rather than Washington as a way to ensure a continuous supply of US arms. Reports show that if Trump came to power, he even delayed the key mineral trade with the Biden administration.
But there’s a big catch. Recent reports suggest that Moscow seized control of up to 70% of Ukraine’s mineral resources, with the richest sediments in the occupied areas of Donetsk, Dnipropetrovsk and Luhansk.
What is under the soil in Ukraine?
What exactly does Ukraine have under the war-torn soil that is gaining worldwide attention? Important mineral gold mines – making the world a potential powerhouse in the global raw materials market.
Ukraine is rich in important minerals and rare earth elements that are essential to a wide range of modern technologies, such as batteries, magnets, catalysts, and electronic components. These materials are extremely important across sectors such as home appliances, healthcare, transportation, power generation, oil refining, and defense technology.
The country has 20 important minerals and metals, positioned as one of the top 10 global suppliers with around 5% of the total global supply.
Among these are rare earth metals such as titanium, lithium, beryllium, manganese, gallium, uranium, zirconium, graphite, apatite, fluorite and nickel, according to the World Economic Forum.
According to the Ministry of Ecology and Natural Resources of Ukraine –
Titanium: Ukraine leads Europe in titanium reserves, ranks among the top 10 worldwide, generating 7% of global supply. 28 known fields also produce zirconium as a by-product. The main titanium-containing minerals are ilmenite and rutile.
Lithium: Ukraine owns one-third of European lithium reserves, accounting for almost 3% of global supply.
Graphite: Ukraine owns 20% of the world’s graphite resources, with approximately 19 million tons of ore containing 5-8% natural graphite reserves. The country is one of the top five global reserve holders.
Nickel & Cobalt: Ukraine has 12 silicate nickel fields containing cobalt as a by-product. The country’s cobalt reserves are estimated to be up to 9,000 tonnes. However, the Pobzskiferonickel plant in Ukraine still relies on importing nickel and cobalt raw materials for its industrial needs.
Rare Earth Elements: Ukraine also has rare earth metal deposits such as tantalum, niobium and beryllium. The six fields are known to contain these metals, and are subjected to non-commercial extraction along with titanium mining.
According to the Ministry of Finance, Ukraine has significant deposits of copper (4th in Europe), lead (5th), zinc (6th), and silver (9th).
For example, Ukraine’s discovered lithium and graphite reserves are 1,000 gWh of total capacity sufficient to support the production of approximately 20 million electric vehicles, and produce cathode and anode materials for lithium batteries. It’s enough for.
Ukraine’s key materials are valued at USD 12 trillion based on estimates that highlight the potential to expand the global market for raw materials. Including other natural resources such as coal and natural gas, this figure rises to US$26 trillion.
According to the Kyiv School of Economics (KSE), rare earth deposits in Ukraine are mainly concentrated in the central region. However, they remain largely undeveloped and their total amount remains undecided.
Therefore, the USD 12 trillion estimate released last month at the Davos Forum should be watched with caution. A significant portion of these reserves is untapped, and the quality and quantity of resources remain speculative.
The full scope and viability of Ukraine’s key materials remain unknown, and further investigation is needed to assess their true potential.
Russian Occupation Minerals
Russia seized control of up to 70% of Ukraine’s mineral resources, with the highest concentrations in Donetsk, Dnipropetrovsk and Luhansk regions. According to Forbes Ukraine, these resources are valued at around US$15 trillion.
A recent report by The Moscow Times cites Forbes Ukraine’s estimate of the total mineral resources of Ukraine at 111 billion tons in April 2023, consisting mainly of coal and iron ore. That’s USD 14.8 trillion.
However, more than 70% of these resources are located in Donetsk and Luhansk, which are partially controlled by Russia, as are Dnipropetrovsk, where Russian forces are advancing.
A 2022 report from the Washington Post estimates that Ukraine’s mineral reserves are much higher, estimated at USD 26 trillion.
US – Russia: Competition for important minerals
Trump’s proposal is not just to counter Ukraine, but China and Russia.
Ukraine is the world’s fifth largest producer of gallium, essential for semiconductors and LEDs, and is a leading supplier of neon gas, providing 90% of the needs of the US chip industry. A full-scale Russian invasion caused a global neon shortage and disrupted US chip production.
The country also possesses sediments essential to the nuclear industry, including 1% of the world’s zirconium production and important beryllium and uranium reserves. Beryllium is extremely important for the nuclear, aerospace, military, acoustic and electronic industries, but uranium is essential for both nuclear energy and defense applications.
President Donald Trump’s interest in Ukraine’s key materials is probably driven by China’s domination in the rare earth market. As of January last year, China accounted for 60% of the world’s rare earth production, and it processed about 90% according to the Center for Strategic and International Studies. Under his “America First” policy, Trump aimed to increase the US competitiveness by reducing his dependence on Beijing.
Meanwhile, Russia, a major supplier of metals in the titanium, nickel and platinum groups, is also feeling the impact of Western sanctions. These restrictions exacerbate the global shortage of critical materials such as titanium, which is essential to the aerospace and electronics industries.
The meaning of the future
According to the World Economic Forum, the global key mineral market, currently valued at US$320 million, is expected to double over the next five years.
Before 2022, Ukraine was a major supplier of steel plates, titanium, lithium, gallium, iron ore and manganese. However, Russian invasions significantly disrupt these supply routes and forced them to rely on more expensive and slower railway alternatives.
Therefore, the battle for mineral resources in Ukraine represents more than just territorial control. This is a key component in the global technology supply chain and geopolitical power dynamics.
Shubhangi Palve is a defense and aerospace journalist. Before joining the Eurasian era, she worked for ET Prime. She has over 15 years of extensive experience in the media industry, spanning the print, electronic and online domains. Please contact the author at shubhapalve(at)gmail.com
