What are Ukraine’s rare minerals and why is Trump eyeing them?
The Trump administration has floated a deal that would secure U.S. access to half of Ukraine’s mineral resources, amid a broader set of negotiations intended to end Russia’s war and guarantee future U.S. support to Kyiv.
Although Ukrainian President Volodymyr Zelensky rejected the proposal, his officials have continued to mull alternatives,
according to Ukrainian officials. Days after the U.S. proposal was introduced,
Zelensky said he discussed “the joint development of critical minerals and rare earth resources” with U.S. senators in Munich.
The proposal has brought renewed attention to Ukraine’s untapped reserves of lithium and graphite, critical for producing electric car batteries, as well as Europe’s largest uranium ore deposits, which Zelensky himself has raised as business opportunities for allies in his
vision for postwar Ukraine.
Here’s what to know about Ukraine’s mineral resources and why they are so valuable.
In a meeting in Kyiv last week with Zelensky, Treasury Secretary Scott Bessent floated a proposal that Ukraine hand over 50 percent of its mineral resources, according to
officials familiar with the discussions, who spoke on the condition of anonymity to talk frankly about the sensitive issue.
The details of the White House’s original request, including a list of the resources and the nature of the rights requested, have not been made public. According to one Ukrainian adviser, the U.S. proposal focused on securing access to Ukrainian deposits of rare metals and critical materials, including lithium, graphite and uranium.
Bessent said the proposal would deepen economic cooperation between the two nations while guaranteeing future U.S. support for postwar Ukraine. “The more the investments the U.S. has here, the more security it will give the Ukrainian people,” Bessent said, describing the proposal as a “long-term security shield” for Kyiv.
The elements reportedly included in the proposed U.S. mineral deal differed from those referenced by Trump earlier this month, when he sparked confusion by expressing interest in Ukraine’s “rare earth” minerals. “We’re looking to do a deal with Ukraine, where they’re going to secure what we’re giving them with their rare earth and other things,” Trump said.
However, Ukraine does not possess noteworthy quantities of “rare earths,” an official category of 17 elements used as high-tech magnets to power cellphones, electric vehicle batteries and certain defense systems.
Which rare metals and critical materials does Ukraine possess?
Ukraine’s rare metal and critical material deposits include some of the world’s largest reserves of titanium and fields of untapped lithium. Collectively, they are estimated to be worth trillions of dollars, although their precise value and distribution across the country are not publicly known.
The
European Commission has described Ukraine as a potential source of more than 20 critical raw materials,
including deposits of kaolin, gallium, manganese and germanium. They are also of interest to Russia, with analysts estimating that Moscow has seized
more than $12 trillion worth of Ukrainian energy assets, metals and minerals (that figure includes oil and coal deposits). One of Ukraine’s key lithium reserves is only about 10 miles from the front line.
Although Ukraine does not produce a dominant global share of these materials, demand for them is expected to increase over the next decade — potentially causing their value to spike.
The U.S. Geological Survey considers the minerals lithium and graphite to be “critical to the U.S. economy and national security.” China — the United States’ primary economic rival on the global stage —
is the world’s top producer of graphite and processes vast amounts of lithium.
“These three elements are at the epicentre of the energy transition and have significant strategic and industrial value,” Pierre Josso, deputy director of the U.K. Critical Minerals Intelligence Center, said in an email Tuesday, referring to lithium, graphite and uranium.
All three, he noted, are expected to become more valuable in the coming years, as demand increasingly outstrips supply.
Josso also noted that although Ukraine hasn’t produced any gold in the 21st century, it has estimated geological gold reserves of close to 3,000 metric tons — roughly equal to the United States’ reserves.
Lithium
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According to Ukraine’s State Geological Service, Ukraine has an estimated 500,000 metric tons of lithium reserves — among Europe’s largest deposits. The soft, silvery metal
extends the life of batteries and enables them to hold a longer charge, making them crucial for the powerful batteries used to power EVs.
“Lithium is coming from a very low base of supply,” Frances Wall, a mineralogy professor at England’s University of Exeter, said in a phone interview Tuesday.
For years, she said, global supply chains had required lithium in only small quantities for smaller gadgets. Since demand for EVs has soared, however, there has been greater pressure to find new sources of lithium.
Wall projected that lithium demand could increase by over tenfold globally in the next decade. “Lots more new deposits will need to be brought into play, and that’s why everyone is looking for lithium deposits,” she said.
Uranium
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This naturally radioactive element is used as the main source of fuel for nuclear reactors.
According to the International Atomic Energy Agency, an egg-size amount of uranium fuel can provide the same amount of power as 88 metric tons of coal. It is valuable, but it is not considered rare.
According to the World Nuclear Association, Ukraine possesses the largest uranium ore deposits in Europe, amounting to over 107,000 metric tons.
Graphite
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Graphite is a soft form of carbon used in almost all electric car batteries, as well as semiconductors and nuclear reactors. Wall explained that graphite is used in the anodes in lithium-ion batteries.
“Every battery needs graphite, and without that, it’s not going to work,” she said. “We’ll need lots more than we’ve used before.”
Before the conflict began, the
U.S. Geological Survey counted Ukraine as one of the world’s top 10 graphite producers.
At one mine in central Ukraine’s Kirovohrad region,
mining firm BGV has forecast the deposit to contain 500 million metric tons of graphite.
Titanium
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Ukraine has some of the world’s largest reserves of titanium, a silver metal that is as strong as steel but 45 percent lighter. Its most critical modern use is by the aerospace industry, but it can also be used in a range of products including paints and body implants.
In 2023,
the U.S. Geological Survey estimated that Ukraine had 8.4 million metric tons of titanium reserves. As of
September of last year, Ukraine was a leading provider of rutile titanium to the United States, accounting for 8 percent of imports.
Beryllium
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BGV operates a beryllium mine in northwestern Ukraine’s Zhytomyr region,
which it said has proven reserves of 5,512 metric tons of the rare metal.
Beryllium’s range of applications include use in computers and cellphones, medical imaging equipment, automobile components and airplane equipment.
US defense stocks are falling.
Rheinmetall: +36.4%
Thales: +22.66%
BAE Systems: +10.17%
Airbus: +5.85%
️The fall in US defense stocks may be related to news that the US Department of Defense is preparing for cuts ahead of the audit of DOGE, led by Musk.
In contrast, European defense stocks are rising as investors have positive expectations for increased European defense spending.