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Ukrainian minerals are at the heart of global geopolitics, with US President Donald Trump calling for access with Ukrainian President Voldymi Zelensky.
But what exactly are these minerals and why are they so much demanded?
Ukraine is often recognized for its vast agricultural land and industrial heritage, but beneath its surface is the “Ukrainian Shield,” one of the most notable geological layers in the world.
This huge exposed crystal rock formed over 2.5 billion years ago and spreads across much of Ukraine. It represents one of the oldest and most stable continental blocks on Earth.
The formation has been subject to multiple episodes of mountain buildings, the formation and movement of magma, and other changes over time.
These geological processes created favorable geological conditions for the formation of several mineral deposits containing lithium, graphite, manganese, titanium and rare earth elements.
All of this is important for modern industries and the global green energy transition.
Ukraine has deposits containing 22 of the 34 important minerals identified by the European Union as essential to energy security. This is positioned among the world’s most resource-rich countries.
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International race
As the world competes with decarbonization, demand for key minerals is skyrocketing. Electric vehicles, wind turbines, solar panels and energy storage systems all require the lithium, cobalt and rare earth elements that Ukraine possesses in abundance.
Lithium prices have skyrocketed from USD 1,500 (£1,164) per ton in the 1990s to around $20,000 per ton in recent years. Demand is expected to increase nearly 40 times by 2040.
According to the International Energy Agency, the number of electric vehicles is projected to exceed 125 million by 2030. Similar growth is expected for other battery metals. Each electric vehicle requires much more lithium than traditional electronics. For example, the Tesla Model S battery requires approximately 63kg of high purity lithium.
Ukraine has three major lithium deposits. These include Shevchenkivske in the Donetsk region and Polokivske and Sternkwatske in the central Kirobograd region. Despite the serious mineral potential, many of Ukrainian mineral deposits remain largely untapped due to the war with Russia, which disrupted mining operations and committed infrastructure damage.
Shevchenkivske lithium deposits contain high concentrations of spodumene. The reserve is estimated to be 13.8 million tonnes of lithium ore. That said, extracting it requires an estimated USD 10 million exploration investment before mining begins.
Meanwhile, IS Polokhivske deposits have a deposit of about 270,000 tons of lithium, which is considered to be one of the best lithium sites in Europe. It is due to its preferred geological conditions, making extraction more economically viable.
However, lithium is just one element of Ukraine’s mineral resources. According to the US Geological Survey, Ukraine is globally ranked as the third largest producer of mineral rutile, accounting for 15.7% of the world’s total production. It is the sixth largest producer of iron ore (3.2% of total production) and titanium (5.8%), and the seventh largest producer of manganese ore (3.1%).
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Ukraine also has Europe’s largest uranium reserves, making it an essential part of nuclear power and weapons. It boasts a considerable deposit of rare earth elements, including neodymium and dysprosium, which are necessary to manufacture everything from smartphones to wind turbines and electric motors.
Additionally, Ukraine has the world’s largest proven reserves of manganese ore. There is approximately 2.4 billion tons of IT, mainly concentrated in the Nikopol Basin, on the southern slope of the Ukrainian shield.
The strategic significance of Ukrainian minerals is recognized in international diplomacy. Recent bilateral negotiations between Ukraine and the United States highlight the geopolitical importance of these resources.
The proposed mineral trade will include Ukraine’s contribution of 50% of future revenues from state-owned mineral resources, oil and gas, and other extractable materials to Ukraine’s reconstruction investment fund for postwar reconstruction. The fund will be jointly managed by Kyiv and Washington.
What about the US’s own minerals?
The US interest in Ukrainian minerals reflects wider geopolitical concerns about increasing demand, volatile price movements and supply chain vulnerabilities.
The US has many of the same important minerals as Ukraine, but environmental regulations, high labor costs and more attractive foreign markets have historically outsourced mining and refining.
This relies on imports from China, particularly in control of the production and processing of important minerals. Access to Ukrainian minerals in exchange for military protection means that the US does not need to purchase these minerals from China.
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In fact, the US Federal Strategy says it will prioritize diversification through a mineral security partnership aimed at establishing a more stable and resilient supply chain.
Important US minerals are distributed in a variety of geological states, including the Appalachian Mountains, the Cordille Lambert, and the Precambrian Shield exposed in parts of the Forewest.
The United States has developed a considerable amount of lithium resources, particularly in Clayton Valley, Nevada and Kings Mountain, North Carolina, but much of the current lithium production comes from the “brine operation.” This is extraction from salt solutions such as seawater or saline lakes, and can be more expensive than hard rock mining.
The global shift towards green energy and electricity transport is accelerating, and minerals are at the heart of this transition. Approximately 80% of the globally produced lithium is used for battery production. Major automakers have invested billions in electric vehicles production, driving unprecedented demand for minerals that enhance the technology.
Ukraine’s mineral wealth positions it as a potential leader in the clean energy revolution. Once stability returns, Ukraine will have a great opportunity to restructure its global supply chain for critical minerals. Even with a 50% allocation to the US, Ukraine can still fund domestic infrastructure, industry growth, employment and economic recovery.
Munila Raj is a geology researcher at the University of Plymouth.
This article was originally published by The Conversation and was republished under a Creative Commons license. Please read the original article
