KYIV, Feb 12 (Reuters) - U.S. Treasury Secretary Scott Bessent visited Kyiv on Wednesday to discuss a critical minerals deal, as Ukraine seeks U.S. President Donald Trump's support amid escalating tensions with Russia.
President Trump has expressed interest in Ukraine supplying rare earth minerals to the United States in exchange for financial aid toward the country's defense efforts against Russia.
Here is a summary of the critical minerals, including rare earths, and other natural resources in Ukraine that may attract the attention of the U.S. and other partners:
Rare earths consist of 17 metals crucial for manufacturing magnets used in various electronics such as electric vehicles, cell phones, and missile systems. The U.S. Geological Survey recognizes 50 essential minerals, including rare earth elements like nickel and lithium, vital for defense, high-tech devices, aerospace, and green energy industries.
Ukraine boasts deposits of 22 out of the 34 minerals classified as critical by the European Union. These resources include industrial and construction materials, precious metals, non-ferrous metals, and various rare earth elements.
Among Ukraine's rare earth resources are elements like lanthanum and cerium for TVs and lighting, neodymium for wind turbines and EV batteries, as well as erbium and yttrium with applications ranging from nuclear power to lasers. The country also holds scandium reserves, as per EU-funded research, though detailed data are not publicly available.
Ukraine is considered a potential key supplier of lithium, beryllium, manganese, gallium, zirconium, graphite, apatite, fluorite, and nickel, according to the World Economic Forum. The State Geological Service estimates Ukraine's lithium reserves at 500,000 metric tons, crucial for batteries, ceramics, and glass.
Additionally, Ukraine holds significant reserves of titanium, lithium, and graphite, necessary for various industries. Notably, Ukraine's graphite deposits, vital for electric vehicle batteries and nuclear reactors, account for 20% of global resources.
President Volodymyr Zelenskiy expressed readiness to collaborate with President Trump on developing Ukraine's abundant critical mineral deposits, including rare earth elements, aligning with his previous proposals to allies.
Despite having valuable reserves, Ukraine currently lacks commercially operational rare earth mines. China, the largest producer of rare earths and other critical minerals, remains a significant player in the industry.
Amidst the ongoing war with Russia, Ukraine has experienced significant territorial losses, including control over coal deposits crucial for its steel industry. The conflict has also resulted in the occupation of a substantial portion of Ukraine's metal resources by Russia.
The government is actively pursuing partnerships with Western allies, estimating significant investment potential in the sector. Challenges such as complex regulatory processes, limited access to geological data, and land acquisition hurdles may pose barriers to investments in exploiting critical minerals in Ukraine. These projects would demand substantial upfront investments and considerable development time.