KYIV, Feb 7 (Reuters) - President Volodymyr Zelenskiy has expressed readiness to negotiate a deal with U.S. President Donald Trump involving U.S. participation in the development of Ukraine's extensive rare earths and critical mineral deposits.
During an announcement on February 3, Trump expressed interest in Ukraine supplying rare earths to the U.S. in exchange for financial support of Kyiv's efforts against Russia.
Zelenskiy proposed this idea in his strategy presented to Kyiv's allies, including Trump, last autumn. The plan envisions securing agreements with foreign partners for shared access to Ukraine's strategic resources.
Trump's remarks did not specify whether he was referring exclusively to rare earths or to all critical minerals, stating that the United States was interested in Ukraine's "rare earths and other things."
Rare earths, a group of 17 metals crucial for devices like electric vehicles, cell phones, and missile systems, have no viable substitutes. Despite Trump's trade war threats against China, the world's leading producer of rare earths, Ukraine is endowed with significant deposits of 22 out of 34 minerals identified by the EU as critical.
Ukraine's abundant natural resources, essential for industries ranging from defense to green energy, include rare earth elements like lanthanum and cerium used in TVs and lighting, as well as neodymium vital for wind turbines and EV batteries.
Zelenskiy stated that Russia's occupation has impacted half of Ukraine's rare earth deposits, and the country currently lacks operational rare earth mines. Ukraine also possesses substantial reserves of titanium, uranium, lithium, beryllium, manganese, and other critical minerals.
The war has disrupted Ukraine's resources, with Russia controlling a significant portion of its territory, including vast coal reserves crucial for its steel industry. Ukraine's strategic reserves, estimated at 500,000 metric tons of lithium, along with graphite and titanium deposits, offer potential for battery and high-tech industries.
To harness these resources, Ukraine aims to collaborate with Western partners such as the U.S., estimating the investment potential in this sector at $12-15 billion by 2033. Despite challenges in regulatory processes and access to geological data, these projects are seen as long-term investments requiring substantial upfront funding and years for development.