Ukraine’s valuable minerals have caught the attention of its friends for a long time. This might be Trump’s demand for military help.
US President Donald Trump has stated that he wants access to Ukraine’s mineral resources in return for future military support that Ukraine needs to protect itself against Russia.
The comment pointed out Trump’s business-like attitude toward the war in Ukraine, but it wasn’t surprising. The US and other Western countries have been interested in Ukraine’s mining resources for a long time.
“We’re investing hundreds of billions of dollars.” They have valuable rare earth materials. Trump told reporters in the Oval Office on Monday that he wants to ensure the security of rare earth materials and mentioned that they are happy to support that. However, he did not clarify what Ukraine had agreed to in response.
He has said before that any future help should be in the form of a loan and should depend on Ukraine talking with Russia.
During Joe Biden’s presidency, the US has given Ukraine $65.9 billion in military support since Russia invaded in February 2022.
Biden said that helping Ukraine is important because their success is crucial for America’s safety. Trump has made it clear that he thinks the US shouldn’t give help without getting something back.
Trump didn’t provide specific information about what he wants from Ukraine, but there had been plans for a stronger partnership between the US and Ukraine regarding minerals for months before he started his presidency in January.
A memo from last year, made during the Biden administration, said that the US will encourage American companies to invest in Ukraine’s mining projects. In return, Ukraine needs to create economic benefits and follow good business and environmental practices.
Ukraine signed a similar deal with the European Union in 2021.
Adam Mycyk, a lawyer at the Dentons law firm in Kyiv, noted that the goal of the deal to secure important mineral supplies from Ukraine is still the same, but Trump’s method appears to be more focused on transactions.
Mycyk told CNN that while it’s not clear what an agreement might look like, it would be best for Ukraine’s recovery after the war and its future economy to have Ukrainian companies handle and add value to any minerals extracted from the country.
Kyiv hasn’t replied to Trump’s remarks yet, but Ukraine’s government has previously said that its mineral resources are a reason for the West to back Ukraine. They want to keep these important resources from ending up in Russian control.
Ukraine’s President Volodymyr Zelensky has specifically mentioned the possibility of future investments in the country’s natural resources by its Western allies as a key part of his “Victory plan.”
“The deposits of critical resources in Ukraine, along with Ukraine’s globally important energy and food production potential, are among the key predatory objectives of the Russian Federation in this war. Zelensky said in an October statement, “This is our chance to grow.”
Nataliya Katser-Buchkovska, co-founder of the Ukrainian Sustainable Investment Fund, stated that a deal to bring US investment into Ukraine’s mining industry would help both Ukraine and the US.
The US mostly relies on importing minerals, with many of them coming from China. The United States relies completely on imports for 12 out of 50 important materials and depends on imports for over 50% of 16 more, according to the US Geological Survey.
According to the Ukrainian government, Ukraine has reserves of 22 out of these 50 important materials.
“It is not only a crucial step for Ukraine’s post-war economic recovery, but it’s also a chance for the US to address global supply chain issues,” said Katser-Buchkovska, who served as a member of the Ukrainian Parliament from 2014 to 2019 and was the head of a parliamentary committee on energy security and transition.
China’s global dominance
Trump mentioned rare earths, 17 elements with magnetic and conductive properties, crucial for electronics, clean energy technologies, and weapons due to their importance in clean energy technologies.
Ukraine doesn’t have large amounts of rare earth minerals, but it does have big quantities of graphite, lithium, titanium, beryllium, and uranium. The US considers all of these to be important minerals. Some of these sources are located in places that Russia currently controls.
China has been the leading producer of rare earth elements and other important materials for a long time. According to the Center for Strategic and International Studies (CSIS), it handles almost 90% of the world’s handling of rare earth minerals. Additionally, China is the biggest producer of graphite and titanium in the world and plays a significant role in processing lithium.
The recent trade issues between the US and China make it more important for the US to find other sources.
On Tuesday, China announced new economic actions in response to Trump’s latest tariffs. These actions include new export restrictions on over twenty types of metal goods and related technologies. Although these materials aren’t the most important ones that the US needs, this action shows that China is ready to use its natural resources to influence trade disagreements.
Mycyk said that the need for these important materials is likely to rise because more people are switching to electric vehicles and renewable energy.
“Ukraine’s deposits are thus globally significant, offering diversification away from dominant producers like China. He said that keeping these resources under Ukrainian control is very important for Ukraine’s economic independence.