Kiev, Ukraine (AP) – Ukraine Offered to sign a contract to continue with President Donald Trump American military aid In exchange for the development of Ukraine’s mineral industry, it can provide a valuable source of rare earth elements essential to many types of technology.
Trump said he I wanted such a transaction It was first proposed earlier this month by Ukrainian President Voldy Milzelensky last fall as part of a plan to strengthen Kiev’s hands in future negotiations with Moscow.
“We have this great potential in the territory we control,” Andri Yamak, the Ukrainian president’s chief of staff, said in an exclusive interview with the Associated Press. “We’re interested in working and developing, With our partnerFirst of all, with the United States. ”
Let’s take a look at how trade connects with Ukraine’s rare earth industry.
What are rare earth elements?
Rare Earth elements are a set of 17 elements essential to many types of consumer technology, including mobile phones, hard drives, electrical and hybrid vehicles.
It is unclear whether Trump is seeking certain elements of Ukraine. This also offers other minerals.
“It could be lithium. It could be titanium, uranium, and many more,” Yermak said. “That’s a lot.”
China, Trump’s geopolitical enemy, is The world’s largest producer of rare earth elements. Both the US and Europe are aiming to reduce their dependence on Beijing.
For Ukraine, such a transaction ensures that its largest and most consequential allies do not freeze military support. It was devastating for the country, and it continued to war almost three years later A full-scale Russian invasion February 24, 2022.
This idea also comes when reliable and uninterrupted access to critical minerals is becoming increasingly difficult globally.
What is the state of the mineral industry in Ukraine?
The rare earth elements of Ukraine are largely undeveloped due to the state’s policies regulating war and mineral industry. The country also lacks good information to guide the development of rare earth mining.
As mineral reserves are scattered throughout Ukraine, geological data is thin and existing research is thought to be almost insufficient. Businessmen and analysts say the real possibilities of the industry are clouded by inadequate research.
In general, the outlook for Ukraine’s natural resources is promising. The country’s titanium reserves, an important component of the aerospace, medical and automotive industries, are considered to be one of the largest in Europe. Ukraine owns some of Europe’s largest known lithium reserves needed to produce batteries, ceramics and glass.
In 2021, Ukraine’s mineral industry accounted for 6.1% of the country’s gross domestic product and 30% of exports.
According to data from We Build, which built Ukraine, a Kyiv-based think tank, due to Russian occupation, an estimated 40% of Ukraine’s metal mineral resources are inaccessible. Ukraine argues that it is Trump’s interest to develop the rest before Russian progress gains more.
The European Union’s European Commission has identified Ukraine as a potential supplier of more than 20 key raw materials and concluded that if the country joins the EU of 27 countries, it can strengthen the European economy.
What happens next?
Details of the deal will likely be unfolded at a meeting between US and Ukrainian officials. Trump announced Tuesday that he would send Treasury Secretary Scott Bescent to Ukraine to meet with Zelensky.
“This war needs to end soon, and it’s over. The US has spent billions of dollars all over the world and showed little,” Trump said in a post on social media networks about the trip.
Ukrainian business officials say US companies have expressed interest. However, attacks on formal transactions may require law, geological surveys and negotiation of certain conditions.
Even in the event of a ceasefire, it is unclear what guarantees companies will need to jeopardize their work in Ukraine. And we are not sure what kind of financing agreements will support contracts between Ukrainian and US companies.
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Susie Blanc of Washington and Associated Press writer Michelle L. Price contributed to the report.