By Munira Raji
Ukraine’s minerals have become central to global geopolitics, with the US president, Donald Trump, seeking a deal with Ukraine’s president Volodymyr Zelensky to access them. But what are these minerals exactly and why are they so sought after?
Ukraine is often recognised for its vast agricultural lands and industrial heritage, but beneath its surface lies one of the world’s most remarkable geological formations, the “Ukrainian Shield”.
This massive, exposed crystalline rock formed over 2.5 billion years ago, stretches across much of Ukraine. It represents one of Earth’s oldest and most stable continental blocks. The formation has undergone multiple episodes of mountain building, the formation and movement of magma and other change throughout time.
These geological processes created favourable geological conditions for forming several mineral deposits including lithium, graphite, manganese, titanium and rare earth elements. All these are now critical for modern industries and the global green energy transition.
Ukraine has deposits containing 22 of 34 critical minerals identified by the European Union as essential for energy security. This positions Ukraine among the world’s most resource-rich nations.
International race
As the world races to decarbonise, demand for critical minerals is skyrocketing. Electric vehicles, wind turbines, solar panels and energy storage systems all require lithium, cobalt and rare Earth elements which Ukraine has in abundance.
The price of lithium has surged from US$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-fold 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 significantly more lithium than conventional electronics. For example, a Tesla Model S battery requires approximately 63kg of high-purity lithium.
Ukraine has three major lithium deposits. These include Shevchenkivske in the Donetsk region as well as Polokhivske and Stankuvatske in the centrally located Kirovograd region – all within the Ukrainian Shield. Despite the significant mineral potential, many of Ukraine’s mineral deposits have remained largely unexplored due to the war with Russia, which has disrupted mining operations and damaged infrastructure.
The Shevchenkivske lithium deposit contains high concentrations of spodumene — the primary lithium-bearing mineral used in battery production. Its reserve is estimated as 13.8 million tonnes of lithium ores. That said, extracting it requires an estimated US$10–20 million in exploration investment before mining can begin.
Meanwhile, the Polokhivske deposit at is approximately 270 thousand tons of lithium is considered one of the best lithium sites in Europe. That’s because of its favourable geological conditions, making extraction more economically viable.
But lithium represents just one element of Ukraine’s mineral resources. According to the US geological survey, Ukraine ranks globally as the third-largest producer of the mineral rutile – making up 15.7% of world’s total output. It is the sixth-largest producer of iron ore (3.2% of total output) and titanium (5.8%), as well as the seventh-largest producer of manganese ore (3.1%).
Ukraine also has Europe’s largest uranium reserves, crucial for nuclear power and weapons. It boasts significant deposits of rare earth elements, including neodymium and dysprosium, which are needed for manufacturing everything from smartphones to wind turbines and electric motors.
In addition, Ukraine is home to the world’s largest proven reserves of manganese ores. There’s approximately 2.4 billion tonnes of it concentrated primarily in the Nikopol Basin on the southern slope of the Ukrainian Shield.
The strategic significance of Ukraine’s minerals has gained recognition in international diplomacy. Recent bilateral negotiations between Ukraine and the US highlight the geopolitical importance of these resources.
A proposed minerals deal would involve Ukraine contributing 50% of future proceeds from state-owned mineral resources, oil and gas and other extractable materials to a reconstruction investment fund for Ukraine’s post-war rebuilding. The fund would be jointly managed by Kyiv and Washington.
What about US’s own minerals?
The US’s interest in Ukrainian minerals reflects a broader geopolitical concern over increasing demand, volatile price movements and supply chain vulnerabilities.
While the US has many of the same critical minerals as Ukraine, it has historically outsourced mining and refining due to environmental regulations, high labour costs and more attractive foreign markets.
This has led to a reliance on imports, particularly from China, which dominates critical mineral production and processing. Getting access to Ukraine’s minerals in exchange for military protection means the US can avoid having to buy these minerals from China.
The US federal strategy in fact states it will prioritise diversification through mineral security partnerships aiming to establish a more stable and resilient supply chain.
The US’s critical minerals are distributed across various geological provinces including the Appalachian Mountains, the Cordilleran Belt and the Precambrian Shield exposed in parts of the midwest.
While the US has developed substantial lithium resources, particularly in Nevada’s Clayton Valley and North Carolina’s Kings Mountain, much of its current lithium production comes from “brine operations”. This is the extraction from salt solutions, such as seawater or saline lakes, which can be more expensive than hard-rock mining.
The global shift toward green energy and electric transportation is accelerating, and minerals are at the heart of this transition. Around 80% of the lithium produced globally is used for battery production. Major automakers are investing billions in electric vehicle production, driving unprecedented demand for the minerals that power this technology.
Ukraine’s mineral wealth positions it as a potential leader in the clean energy revolution. Once stability returns, Ukraine will have a golden opportunity to reshape the global supply chain for critical minerals. Even with a 50% allocation to the US, Ukraine would still be able to fund domestic infrastructure, industry growth, jobs and economic recovery.
Munira Raji is a Research Fellow of Geology at the University of Plymouth.
Dan Leonard says
God help Ukraine as they are truly suffering and Trump wants to split Ukraine with Russia and leave Ukraine penniless…and mineral devastated and robbed.
Ed P says
Thanks for the “rest of the story”
Ray W, you present a much different spin, as in the US is a “thug” in this contractual arrangement. The US will provide infrastructure and the technology to bring the Ukrainian mining operations on line quickly. The US presence in these “contested” geographical areas will provide stability and protection to the country of Ukraine. It will be a “win-win”. Protection can come in many forms, not just militarily.
Finally, why should the US taxpayer be paying the “dinner check” for the world every single meal? It’s ok to “split” the check. At times we should even get treated.
Jim says
I’m glad that Ukraine has the mineral resources that may be able to fuel their economic recovery if/when this war with Russia comes to a conclusion. That, of course, depends on whether there is any free Ukraine left at that point.
I am not at all happy with Trump’s heavy-handed push on Ukraine to cede 50% of it’s mineral wealth to the USA in “payment” for the weapons and materials we’ve provided to them to fight Russia. Freedom has not been something the USA has been known for charging countries for up until Trump became dictator. And, on top of that, instead of fulling supporting Ukraine during these so-called “negotiations”, Trump has undercut the Ukrainian position by giving away keep points like NATO membership and giving back the land that Russia has illegally taken. So much for the great negotiator. And, worse, he’s gone so far as to call the leader of Ukraine a “dictator” and lambast him – unjustifiably – in the White House and then cut off intelligence to the Ukrainian forces all the while Russian continued to viciously attack. And I’ve yet to hear Trump or any of his “team” say a single bad word about Putin or anything that he’s done. I could never imagine that the USA would fall so far so fast.
Why the USA couldn’t negotiate a deal with Ukraine to harvest the minerals wanted and guarantee Ukrainian sovereignty as part of that is completely beyond me. Apparently we’ve reached the point in this country that we care for nothing but what’s in it for us, not what’s best for the world and society in general. So much for American being the leader of the free world.
All of this is not going to end well for this country. We’ve got almost four years of this ahead of us and I’m quite sure that the USA standing in the world will be forever changed because of asinine positions like this. MAGA thinks this is all for the good. And you can’t change people who have closed minds. Trump and JD Vance lead the charge on this new America. Vance just criticized Denmark on Greenland (which is still a country under Denmark) for no good reason. Instead of pushing for the profit, the USA could negotiate to look at Greenland’s mineral resources and then an agreement to mine these as well. As a team. As partners. None of us like to have anything rammed down our throats from the powers that be (and most of us have experienced that at least once) but MAGA cheers this on with Trump. The absurdity of this seems completely lost on them.
Trump is going to leave the USA in extremely bad shape and with few, if any, allies who would lift a finger to help us when we need it. I hope MAGA thinks this stupidity is worth it when that time arrives.
Ed P says
Jim,
If only Trump and his cronies knew what you know. [sigh]
Let’s start with the Ukraine. There has been no settlement. The war still rages on. Nothing has been given away. The transparency of this administration is allowing us to see the wheels, gears, and cogs turn in real time. You never had this in prior administrations. This type of stress and tension always occurs behind the scenes during all foreign negotiations, big and small.
Greenland is just more of the same . You realize that Trump is not the first US President to understand the geopolitical importance of Greenland. Americans have never been able to understand the Chinese because they are infamously working the long game.
The United States need to prevent the Russians and the Chinese from occupying Greenland. We need to expand our Military presence and forge a working relationship with the residents of Greenland and Denmark. What we are “seeing” is the political theatrics occurring, nothing more. This will require patience and wisdom to accept the long game.
I’m also always curious how you and others can predict how things are going to turn out.
Most of Trumps actions are so unique and unconventional that I don’t think anyone could possibly predict. I know his techniques are used daily in business boardrooms and in business negotiations. Recognizing that many people don’t believe a government can be run efficiently like a business, is just an opinion. We don’t know if it can. However, if radical changes are not made, bankruptcy is a possibility as well our loss of World Leadership.
We know our government can’t pass an audit. We know our voluminous computer systems can’t talk to each other. We know some systems haven’t changes in 50 years.
We know waste and fraud are real. We know changes must be made.
The hate for the players prevents you and others from seeing the urgency and speed necessary to reposition and correct course.
Exactly what got us here? Trump did not.
Dennis C Rathsam says
Biden gave Ukraine, more money, more weapons to prolong this war. He gave them just enough, but not enough to win! Why not take these minerals for Biden gifts? After WW2 who rebuilt Japan, THE USA! Who rebuilt Europe, the USA! Who,s gonna rebuild Ukrine????? THATS RIGHT USELESS DEMOCRATS! the USA!!!!
BillC says
@Ed P Perhaps Dollar Tree stores are a threat to US national security in that almost all the products they sell are from China.
This from Harvard Kennedy School Belford Center /January 16,2025:
“China has shown interest in Greenland’s mineral wealth and proximity to potential shipping routes, but in recent years its presence on the island has dwindled. In 2018, China released a white paper detailing its Arctic strategy, including its intention to build a “Polar Silk Road,” in parallel with its Belt and Road Initiative infrastructure investments in other regions. During the 2010s, Greenland courted Chinese mining companies to invest, but subsequent mining projects involving Chinese partners have stalled or failed. Pressure from the United States also helped quash Chinese bids to construct new airports and convert an abandoned Danish naval base into a research station. Though Greenland has expressed openness to working with international partners, China has not renewed its overtures. China’s main presence in the Arctic is in Russia. Greenland’s largest trading partner is China, but this fact is not necessarily significant by itself, since China is the largest trading partner for most countries in the world.”
– Harvard Kennedy School Belford Center /January 16,2025
Kennan says
This is meant to profit the US/Trump and has nothing to do with transferring into a green energy world. This is the part where we get to test our ability to learn. What have we learned from all the dealings and or attempted dealings that Trump has brokered? it is a win-win for Trump and no one else. Profit and nothing else. Please. Let’s be honest we know who we’re dealing with. We know what he does, and we know how he does it. What he says, and what he does are always completely different.. For me. For my brand it’s that simple.
This is about CONTROL.
Brian Riehle says
And if anybody really cares why Trump wants Greenland and Canada so much, they both have some of the largest known deposits of “rare earth ” on the planet.
Ed P says
Bill C
The point that if we allow China to become the worlds economic leader, it’s problematic for the long term well being of the United States. The shipping lanes are a bit more important in the short term.
It’s just a “tad” more complicated then your “dollar store” comment.
Kennan,
Could “control” be defined as America First? Is that a bad concept? Why should the American Taxpayer keep paying the worlds receipts. Imagine is all those dollars were used to improve our communities or better yet, left with the citizens.
BillC says
@Ed P There are 8 Arctic countries, 7 of which belong to NATO —Canada, the Kingdom of Denmark (Greenland), Finland, Iceland, Norway, Sweden, and the United States. The 8th is Russia, which is the real threat, much more so than China. What part of “Though Greenland has expressed openness to working with international partners, China has not renewed its overtures” don’t you understand? Why do you focus on China in regards to Ukraine? Please explain how Trump, by attacking and weakening our NATO allies, makes the US more secure against Russian aggression?
“Trump derangement syndrome” really stands for Trump is deranged and leading this country down the tubes.
Stop the madness… Vote for Weil April 1st.
Sherry says
Thank You Bill C. Right On!!!
The dude says
One of the biggest arguments for deleting the Department of Education is right here… on this blog.
“Who,s gonna rebuild Ukrine?????”
First off… what exactly is a “Ukrine” and how does one go about rebuilding it?
Between Dennis’s daily slaughtering of the english language, and Jimbo’s loquacious word salads always blaming Biden for the direct consequences of his decades of MAGA voting… it’s clear that the Dept. Of Ed. was not up to par in years past in teaching the three R’s and critical thinking.
Ed P says
Bill C,
China has enacted an export ban on antimony, gallium, germanium and super hard materials intended for the United States on December 24, 2024. Perhaps you missed that new worthy tidbit? Trade controls took effect in September 2024 prior to the election. China put export controls on graphite back in December 2023. (Can’t blame Trump)
Spend 10 minutes to investigate the vast importance of rare earth minerals to aid in your understanding of why both Canada and Greenland’s resources are important to the future well being of our country.
I have a little different spin on Trump/Vance’s approach to our neighbors but we will have to see if their current trajectory produces results. Appears hard to justify their methods, that much I will agree.
BillC says
@Ed P Your lofty view from the boardroom window is fogged and limited, because down here on the ground everybody knows what rare earth minerals are. (Except your hero DJT who kept referring to them as “raw earth minerals”.) As usual you have either dodged or missed the point.
BTW your belief that Trump is shrewdly using boardroom tactics to negotiate superior deals assumes that Putin, Xi, etc. are naive newcomers to the game, deer in Trump’s headlights. He’s the newcomer, that is, unless you want to count being the host of “The Apprentice” as high powered negotiating. (Now he’s “pissed off” at Putin because he has finally figured out that Putin played him like a fiddle and Trump’s numbers are dropping like a rock.)
Ed P says
Bill C
Once again, apologies. Rational, common sense, or an alternate concept is lost in debate with you. There doesn’t appear to any room for negotiation or growth.
I can only hope one day to “understand ” the world as intricately as you.
Kennan says
Honestly, if this America first then we are fucked.
We are not supposed to be the country that kicks others when they are down. WE ARE. THIS IS WHO WE ARE.
The dumpster fire we call an administration says Ukrain attacked Russia? Honestly, we talk a good game when it comes to being exceptional, the shining city on the hill? From underdog to overlord. I certainly would prefer to have tax dollars go to people TRYING NOT TO GET WIPED OUT OF EXISTENCE, as opposed to endless money, tax dollars, and weapons to a country that is literally wiping out a entire people and culture in Gaza in far less time.
Meanwhile, here at home we have IMBECILES running our military, CIA, and FBI. Wondering when my family group text gets “sucked into “ US military plans. Trump administration would probably call it “transparency”.
The cherry on top!!!! Let’s get rid of The Department of Education, Social Security, Medicaid,Medicare, massive cuts to Veterans Administration and cancer research for children!
America First….. at everyone else’s expense.
FUCK AMERICA FIRST.