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What is the status of Ukraine's essential minerals?

Ukraine and the United States signed a deal on Wednesday that was heavily promoted by U.S. president Donald Trump. The agreement will grant the United States access to new Ukrainian mineral deals and funding for investment in Ukraine's rebuilding.

Here is a list of critical minerals in Ukraine, including rare Earths and other natural resources:

What are rare earths and what do they serve for?

Rare earths is a grouping of 17 metals, used in the production of magnets for electric cars, cell phones and missile systems. There is no substitute.

The U.S. Geological Survey considers rare earths, such as nickel and lithium, to be crucial.

Minerals are vital for industries like defence, high-tech appliances and aerospace, as well as green energy.

What mineral resources does Ukraine have?

According to Ukrainian data, Ukraine has 22 of the 34 critical minerals that the European Union identified. These include ferro-alloy, industrial and construction materials as well as precious and nonferrous metals and rare earth elements.

According to the Institute of Geology of Ukraine, the country has rare earths like lanthanum, cerium and neodymium. These are used for wind turbines, electric vehicles and batteries. Erbium and yttrium can be used to produce lasers, nuclear power and other applications. EU-funded research indicates that Ukraine also has scandium deposits. The data is not classified.

World Economic Forum said that Ukraine is a major potential supplier of lithium as well as beryllium and other metals such as gallium, zirconium.

State Geological Service of Ukraine said that Ukraine has one Europe's largest lithium reserves estimated at 500,000 tons - essential for batteries, ceramics and glass.

Titanium reserves are located mainly in the northwestern and central parts of the country, whereas lithium deposits are found in the east, centre and southeast.

The graphite reserves in Ukraine, which are used to make electric vehicles batteries and nuclear power reactors, account for 20% of the global resource. Deposits are located in the west and centre.

Ukraine has also significant coal reserves. However, most of them are under Russian control in the occupied territories.

According to mining analysts and economists, Ukraine does not currently have any rare earth mines that are commercially active.

China is the largest producer in the world of rare earths, as well as many other essential minerals.

WHAT DO WE KNOW OF THE DEAL

After months of often fraught negotiations and uncertainty, the two countries signed an accord in Washington.

The agreement establishes a fund of joint investments for Ukraine's rebuilding as Trump attempts to achieve a peaceful settlement in the three-year old war between Russia and Ukraine.

In a photo published on X, U.S. Treasury Sec. Scott Bessent was shown with Ukrainian First Deputy Premier Yulia Shvyrydenko signing the agreement. The Treasury said that the deal "clearly signaled the Trump Administration's dedication to a sovereign, free and prosperous Ukraine."

Svyrydenko stated on X, that Washington will contribute to the fund. She said that the accord also provides new assistance such as air defense systems for Ukraine. The U.S. didn't directly respond to that suggestion.

Svyrydenko stated that the agreement allowed Ukraine to "determine where and what to extract" as well as that Ukraine's subsoil remained its property.

Svyrydenko stated that Ukraine does not have any debt obligations towards the United States as a result of the agreement. This was a crucial point in the long negotiations between the countries. She said that the agreement was also in line with Ukraine's Constitution and its campaign to join Europe.

The draft failed to provide any concrete U.S. guarantees of security for Ukraine as one of its original goals.

Which Ukrainian resources are under Kyiv's control?

The war in Ukraine has left a lot of damage, and Russia controls about a fifth.

The majority of Ukraine's coal reserves, which powered the steel industry in Ukraine before the war, is concentrated to the east.

According to We Build Ukraine, and the National Institute of Strategic Studies in Ukraine, data from the first half of the year 2024 shows that about 40% of Ukraine's metallic resources are under Russian occupation. The think-tanks did not provide a detailed breakdown.

Since then, Russian troops continue to make steady progress in eastern Donetsk. In January, Ukraine shut down its sole coking coal mine near the city of Pokrovsk that Moscow is trying to seize.

Russia has taken over at least two Ukrainian deposits of lithium during the war. One in Donetsk, and the other in Zaporizhzhia in the southeast. Kyiv controls the lithium deposits of central Kyrovohrad.

What opportunities does Ukraine offer?

Oleksiy Solovev, the first deputy minister of economy, stated in January that the Government was negotiating with Western allies, including the United States and Britain, France, and Italy, on projects related the exploitation of critical materials. The government estimates that the total investment potential in this sector will be around $12-15 billion between 2033 and 2033.

The State Geological Service stated that the government is preparing 100 sites for joint licensing and development but did not provide any further details.

Investors have highlighted a number barriers to investment, despite the fact that Ukraine has an extremely qualified and inexpensive workforce and developed infrastructure. These include complex and inefficient regulatory processes, as well as difficulties obtaining geological data or land plots.

They said that such projects would require years of development and a large upfront investment. Reporting by Olena Hartmash, Editing by Kirsty Donovan and Neil Fullick

(source: Reuters)