Ukraine and the United States are considering a crucial minerals deal at this week’s Munich Security Conference, according to officials from the two countries.
After meeting with Ukrainian President Volodymyr Zelenskyy, U.S. Treasury Secretary Scott Bessent described the proposed agreement as a potential “long-term security shield” for Ukraine when its war with Russia comes to an end.
Zelenskyy confirmed that Ukraine had received the first draft of the agreement and expressed hope that a final deal could be reached in Munich. Ukraine aims to secure continued U.S. support as it tries to stand strong against the ongoing Russian invasion.
U.S. President Donald Trump, meanwhile, has stated his desire to strike a deal for Ukraine’s rare earth mineral resources in return for continued U.S. backing of the Ukrainian war effort.
“I told them (Ukraine) that I want the equivalent [of] like $500 billion worth of rare earth,” Trump told Fox News in an interview aired Monday.
Strategic resources in shifting global landscape
Global competition for critical raw materials essential for industry has intensified in recent years. CRMs in demand include uranium, titanium, lithium, graphite, nickel and aluminum, as well as rare earth minerals used in an array of high-tech devices.
Currently, China is the world’s top supplier of rare earth minerals. According to a recent World Economic Forum report, China supplies about 40% of the European Union’s demand for those resources. Other significant suppliers include Australia, South Africa, Canada and Brazil.
The United States and the European Union have worked for years to reduce their reliance on China for the minerals. That’s where Ukraine comes in.
The United States maintains a list of 50 critical raw materials, and Ukraine possesses at least 22 of the elements, according to Serhii Voitsehovskyi, a board member of Ukrainian mining investment company BGV.
That includes significant deposits of rare earth materials, although the minerals are so far mostly untapped due to the war and a lack of sufficient geological data.
Proven reserves include some of the world’s largest deposits of graphite, uranium, titanium and lithium — materials essential for many industries, including renewable energy and defense.
“We have the largest lithium deposits in Europe and significant uranium reserves, which are becoming increasingly valuable as nuclear energy experiences a global resurgence,” Voitsehovskyi said.
Roman Opimakh, former general director of the Ukrainian Geological Survey, said that the U.S. has become increasingly desperate for reliable sources of CRMs.
“Over the past few years, the U.S. has seen a 24% reduction in CRM production,” he told VOA. “At the same time, China has moved to ban direct exports of certain materials, favoring value-added products instead. This creates an urgent need for alternative sources, and Ukraine is well-positioned to fill this gap.”
Geological diversity
The World Economic Forum estimates that Ukraine’s rich geological diversity ranks it among the world’s top 10 mineral resource suppliers, holding about 5% of global reserves.
China’s dominance in CRM markets stems from decades of strategic investment. Ukraine hopes to develop a similar long-term vision, using its resources to bolster its economy and enhance integration with Western economies.
“For Ukraine, developing this sector is not just about exports — it’s about building a strong local economy that provides jobs and stability. For our international partners, it’s about securing a reliable and democratic source of these essential materials,” Voitsehovskyi said.
The continuing Russian invasion — and any peace deal that left Russia in control of Ukraine’s eastern provinces — might complicate those plans. Opimakh says five to 10 key deposits of critical raw materials are in areas occupied by Russian troops.
“These deposits have reserves, proven reserves,” he said. “Among them are earth elements and lithium, at least, and manganese.”
However, he added, “a majority of critical minerals are located in territory controlled by the Ukrainian government.”
Ukraine’s CRM industry needs development
Historically, Ukraine has been a significant player in the mining industry, with substantial operations in coal, iron and other commodities. However, the country’s CRM sector is still in its early stages. Unlike established industries, the development of CRM mining requires advanced exploration and processing technologies, areas in which Ukraine is seeking international investment and expertise.
“Mining and processing CRMs in Ukraine can have a transformative effect on Ukraine’s economy, providing jobs, infrastructure development and technological advancements,” Opimakh said. “At the same time, it enhances global security by reducing dependence on a single supplier.”
BGV has already invested $100 million in CRM projects; however, Voitsehovskyi said that scaling up operations requires additional financing.
“Developing a graphite mining project in Balakhivka (Kirovohrad region), for example, requires approximately $450 million in capital expenditures,” he said.
As Ukraine seeks to establish itself as a key player in the CRM sector, partnerships with the U.S. and other Western countries will be essential, analysts say. The partnerships would be strategic as well as economic; they would ensure a stable and diversified supply of critical materials for the global market while strengthening Ukraine’s post-war recovery and economic growth resilience.
“We believe in a win-win strategy. Ukraine has the resources, and our partners require these materials. Together, we can develop a sustainable, high-value industry that benefits everyone,” Voitsehovskyi said.
Oleksiy Kovalenko contributed to this report.
