UKRAINE’S MINERAL RESOURCES

The US proposed accessing 50% of Ukraine’s critical minerals to reduce reliance on China’s REE production in exchange for continued military and economic aid against Russia. Ukraine’s outdated surveys, legal restrictions, and EU partnership complicate the deal, while Zelenskyy demands stronger security guarantees to protect national sovereignty amid mounting tensions.

Last Updated on 24th February, 2025
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The US has proposed accessing 50% of Ukraine’s critical minerals in exchange for continued military and economic support against Russia.

About Critical Minerals

Critical minerals are resources vital for economic development, national security, and high-tech industries.

They include rare earth elements (REEs) like neodymium (used in EV batteries and wind turbines), lithium (EVs), titanium (aerospace), graphite (nuclear reactors), and uranium (nuclear energy).

Ukraine holds 22 of the 50 minerals considered critical by the US and 25 of the 34 prioritized by the EU, including competitive reserves of lithium, titanium, beryllium, and uranium.

Why Does the US Want Them?

China controls about 85% of global REE production. Access to Ukraine’s minerals would reduce US dependence on China, a geopolitical rival.

Critical minerals are essential for advanced weaponry, semiconductors, and clean energy technologies. Ukraine’s resources could strengthen US defense and tech industries.

Trump claims the US is owed $500 billion in minerals to offset $69.2 billion in aid provided since 2014.

Ukraine’s constitution states that subsoil resources belong to Ukrainians, and any deal must comply with its laws. President Zelenskyy has refused to sign the initial proposal, demanding stronger security guarantees.

Key Challenges for the US

Ukraine’s laws require parliamentary approval for resource deals, and public sentiment opposes resource extraction without clear benefits.

Geological surveys are outdated (many from the Soviet era), and exact reserves remain unknown. Experts warn it could take 15+ years to develop mines.

Ukraine signed a strategic partnership on raw materials with the EU in 2021, potentially complicating US access.

About 40% of Ukraine’s mineral-rich areas are under Russian control, including the Shevchenko lithium deposit near occupied Donetsk.

Way Forward

Ukraine’s minerals are strategically valuable, however, the US faces legal, logistical, and geopolitical barriers. The deal’s success depends on security guarantees, transparent resource data, and Ukraine’s sovereignty over its resources.  

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Source: 

INDIAN EXPRESS

PRACTICE QUESTION

Q.How can India leverage its geological potential to become a key player in the global critical mineral market? 150 words

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