KYIV (AP): Ukraine has offered to develop its mineral industry, a potential source of rare earth elements, in exchange for continued US military aid. This proposal, initially suggested by Ukrainian President Volodymyr Zelenskyy last fall, aligns with US President Donald Trump’s interest in such a deal.
“We really have this big potential in the territory which we control,” Andrii Yermak, chief of staff to the Ukrainian president, said in an interview. “We are interested to work to develop with our partners – first of all with the United States. It can be lithium. It can be titanium, uranium, many others,” Yermak said. “It’s a lot.”
China is the world’s largest producer of rare earth elements. Both the US and Europe have been trying to reduce their dependence on China. For Ukraine, a deal would ensure continued military support from its most important ally, crucial given the ongoing war following Russia’s full-scale invasion on February 24, 2022.
Ukraine’s rare earth elements are largely untapped due to the war and state policies. Geological data is limited, and the industry’s potential is unclear. However, Ukraine has significant reserves of titanium and lithium. In 2021, the mineral industry contributed 6.1 percent of Ukraine’s GDP and 30 percent of exports. An estimated 40 percent of Ukraine’s metallic mineral resources are inaccessible due to Russian occupation.
Ukraine believes it’s in the US’s interest to develop the remaining resources. The European Commission has identified Ukraine as a potential supplier of over 20 critical raw materials. Details of any deal will likely emerge from meetings between US and Ukrainian officials. US companies have expressed interest, but a formal deal would require legislation, geological surveys, and negotiations. Security guarantees and financing agreements would also need to be addressed.
