The war in Ukraine has not only been a battle for sovereignty and security in Europe but also a conflict with profound economic and technological implications. Behind international support and diplomatic tensions lies an increasingly coveted strategic resource: rare earth elements and other critical minerals buried beneath Ukrainian soil.
Ukraine possesses one of the largest reserves of critical minerals in Europe. Out of the 34 elements that the European Union considers essential for its economy, Ukraine holds 22, including lithium, titanium, graphite, and several rare earth elements such as neodymium and erbium. These may be unfamiliar names, but they are crucial for producing electric vehicle batteries, magnets used in wind turbines, electronic devices, and defense technological equipment.
Many of these deposits are located in regions directly affected by the war. Luhansk, Donetsk, Zaporizhzhia, and Kherson—four regions annexed by Russia in 2022—hold approximately 53% of Ukraine’s mineral reserves. Moscow’s control over these areas has hindered Kyiv’s ability to exploit these resources, limiting its capacity to attract foreign investment and develop its local mining industry.
Ukraine’s deposits of natural graphite, a metal used in lithium-ion batteries, represent 6% of the world’s reserves. In addition to its use in batteries, graphite is employed in applications ranging from nuclear reactors to simple pencils.
The country also holds significant lithium reserves, estimated to be between 1% and 2% of the global total, with approximately 500,000 metric tons confirmed. This mineral is essential for manufacturing batteries, ceramics, and glass, positioning Ukraine as a key supplier of this resource in Europe.
In addition, Ukraine has the largest titanium reserve on the continent, representing 1% of the world’s total. According to the Ukrainian Geological Survey, the country could supply the metallic titanium demands of the United States and the European Union for 25 years.
Ukrainian deposits of uranium, indispensable for nuclear power generation, account for 2% and 4% of global reserves.
On top of all that, Ukraine also has significant deposits of rare earth elements such as lanthanum and cerium, used in screens and lighting systems; neodymium, essential for wind turbines and electric vehicle batteries; and elements like erbium and yttrium, used in applications ranging from nuclear energy to laser manufacturing.
The Donbas region is the richest in metals and hosts most of Ukraine’s heavy industry. Historically, it has been the country’s most significant contributor to GDP.
China also wants its share
Interest in Ukraine’s minerals extends beyond the war. Access to these materials is crucial for manufacturing clean technologies in a world moving toward a transition to ‘green’ energy. China dominates rare earth production and refining, controlling 70% of the global market. For Western countries, diversifying the supply of these materials is a strategic priority.
The United States, in particular, has stepped up efforts to reduce its dependence on China for rare earth supply chains. With only one operational mine and no significant refining capabilities, Washington sees in Ukraine an opportunity to strengthen its independence in this key sector. This explains the Trump administration’s strong interest in securing a deal with Kyiv to exploit these resources.
The Trump administration has sought to solidify its position in Ukraine’s mineral market through a cooperation agreement that, had it been signed on February 28th during President Volodymyr Zelensky’s White House visit, would have been one of the most significant foreign investments in Ukraine’s recent history. According to leaked documents, the pact stipulated the creation of a joint fund in which Ukraine would contribute 50% of the revenues from exploiting its natural resources, including critical minerals, oil, and gas. In return, the United States committed to reinvesting these funds into infrastructure and reconstruction projects in Ukraine.
However, Zelensky rejected Washington’s initial conditions, which included a demand for $500 billion in potential revenue. The Ukrainian President stated that he could not commit future generations of Ukrainians to such a deal without receiving security guarantees. Tensions between the two leaders became evident during the televised meeting with Trump accusing Zelensky of “overplaying his hand” and demanding that he accept the proposed terms to continue receiving U.S. support.
France and the United Kingdom: Actors with their own interests
While the United States seeks to position itself as the leading investor in Ukraine’s mining sector, France and the United Kingdom have also made moves.
The French have pursued bilateral agreements with Kyiv to secure the supply of critical materials for their technology and defense industries. Since 2024, France has been negotiating mining cooperation agreements with Ukraine, which could conflict with U.S. interests if both parties seek to monopolize access to these resources.
The United Kingdom, on the other hand, has been a steadfast ally of Ukraine in its war against Russia and could leverage this relationship to secure access to critical minerals without requiring significant direct investments. London has expressed concerns about Europe’s dependency on China in this sector and may opt for a long-term cooperation strategy with Ukraine to diversify the global supply chain.
Ukraine’s critical minerals and rare earths are an economic asset and a crucial card in the country’s geopolitical game. As the war continues, access to these resources could shape Ukraine’s reconstruction and economic future. However, the competition between the United States, France, and the United Kingdom adds another layer of complexity as each country seeks to secure its slice of the pie.
The coming months will determine whether Ukraine can leverage these resources to strengthen its negotiating position or if external powers will dictate the terms of their exploitation.
