The destiny of Ukrainian security is being decided without the involvement of Europe, with the U.S. at the helm of peace negotiations. Recent actions by the Trump administration have caused concern among European leaders, who fear they will be excluded from negotiations that will shape their own security. While Washington assures that European interests will be considered, it has made it clear that direct European involvement is not on the cards. This move has renewed debates on Europe’s regional defense responsibility and dependence on the United States..
Key points:
- Trump stated on February 3 that the U.S. is interested in Ukraine’s rare earth minerals.
- Zelenskiy included this idea in his “victory plan,” presented to allies last year.
- Ukraine aims to work with foreign partners to develop its valuable mineral resources.
- It is unclear whether the U.S. is only interested in rare earth minerals or other critical elements as well.
Rare earth minerals are vital to modern technology, including electric vehicles, mobile phones, and missile defense. China is currently the primary exporter of rare earth minerals, but the U.S. would like alternative sources. Ukraine has 22 of the 34 important minerals cataloged by the European Union, so it is a potential partner to consider.
What rare earth minerals does Ukraine have?
Ukraine is also called the “breadbasket of Europe” because it has fertile agricultural soil, but it also has gigantic mineral deposits. These minerals are essential for various industries such as defense, aerospace, and green technologies.
Important minerals in Ukraine:
- Lanthanum & cerium: Used in TVs and lighting.
- Neodymium: Essential for wind turbines and electric vehicle batteries.
- Erbium & yttrium: Used in nuclear power and lasers.
- Scandium: Found in Ukraine but exact data is classified.
- Titanium & uranium: Ukraine has the largest reserves in Europe.
- Lithium: Crucial for batteries, ceramics, and glass. Ukraine has an estimated 500,000 metric tons.
- Graphite: 20% of global reserves are in Ukraine, used in electric vehicle batteries and nuclear reactors.
- Nickel, Manganese, Gallium, Zirconium: Other critical materials available in Ukraine.
Despite these resources, Ukraine does not have any fully operational commercial rare earth mines. Furthermore, the ongoing war has affected Ukraine’s ability to access and mine these materials.
What resources are under Kyiv’s control?
Ukraine’s ongoing war with Russia has significantly impacted its mining sector. Russia now occupies about 20% of Ukraine’s land, including areas rich in minerals.
Key facts about territory control:
- Most of Ukraine’s coal reserves, vital for the steel industry, are in Russian-occupied territories in the east.
- About 40% of Ukraine’s total metal resources are under Russian control.
- Russia has seized two major lithium deposits in Donetsk and Zaporizhzhia.
- Ukraine still holds lithium reserves in the Kirovohrad region.
- Russia continues to advance in eastern Ukraine, threatening more mineral-rich areas.
Since the war began, Ukraine has struggled to maintain mining operations. In January 2024, it had to close its only coking coal mine outside Pokrovsk as Russian forces advanced.
Challenges and opportunities for mining in Ukraine
Despite the war, Ukraine is looking to attract foreign investment to develop its mining sector. The government is working with Western allies, including the U.S., Britain, France, and Italy, to fund mining projects.
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Potential and challenges:
- The government estimates the sector’s total investment potential at $12-15 billion by 2033.
- Ukraine is preparing about 100 mining sites for joint development with international partners.
- The country has skilled and affordable labor, making it attractive for investment.
- Infrastructure is already in place, but regulatory issues and land acquisition challenges remain obstacles.
- Extracting these resources will take years and require major financial commitments.
Ukraine’s rich mineral reserves present an opportunity for both Ukraine and the U.S. to collaborate on securing critical minerals. However, the ongoing war and investment challenges must be addressed before large-scale mining operations can begin.
