US President aims Ukraine’s mineral riches as payment for US military aid. With trilionary reserves, the country becomes a key piece in geopolitics
What does Donald Trump want from Ukraine? Donald Trump’s offer of “minerals in exchange for support” to Ukraine last week highlighted the country’s vast and rare mineral resources. Thus, Washington seeks rights to these resources as compensation for previous military support. According to Financial TimesUkraine has large underground deposits, valued at up to $ 11.5 trillion of critical minerals. These include lithium, graffiti, cobalt, titanium and rare lands like Gallium, which are essential for industries such as defense and electric vehicles.
However, these rare deposits in Europe did not undergo significant exploration or development. These processes take years, even in stable jurisdictions. In addition, data on the quality of reservations is lacking, crucial information to attract investors.
Trump’s interest follows his attempt to buy Greenland, also rich in critical minerals. On the other hand, Western countries seek alternative sources of rare land, reducing the dependence of China, which dominates the global supply chain.
What rare lands and mineral riches does Ukraine have?
Ukraine’s underground contains about 10% of the world’s lithium reserves used in the production of batteries, according to government data. These reserves cover about 820 km², but none have been mined so far.
In addition, Ukraine has substantial zirconium reserves used in jet engines, and scandal, none of which was explored. The country also has tantalum, niobium and beryllium reserves, used in semiconductors, superconductors and aerospace sector, respectively. Although they are extracted on a small scale, their potential is vast, according to Ukrainian authorities.
Ukrainian officials say the country is among the top ten in titanium reserves, used in missiles, airplanes and ships. However, only 10% of these reserves are being developed.
Prime Minister Denys Shmyhal argued that Ukraine could replace Russian titanium imports throughout Europe. On the other hand, Roman Opimakh, former director of the Ukraine Geological Service, warned that there are no modern rare reservations assessments. In fact, current estimates are based on studies of the Soviet era.
“Rhetoric about minerals is a ‘heavy political posture’. The data is not modern, and we have little information about what’s there, ”said Gracelin Baskaran, director of the US Strategic and International Studies Center.
Where are natural resources located?
The Ukrainian geological service states that the government prepares about 100 places for licensing and joint development, but has released few details.
Mineral resources are spread across the country. However, since the Russian invasion in 2022, more than 20% of them are in areas under Russian control, according to Kiev estimates.
The Critical Metals Corp, based in Australia, bought licenses for two of the major lithium reserves at the end of 2021. Three months later, Russia began its invasion. One of the reservations, the Shevchenko deposit in the east, fell under Russian control, Tony Sage, president of the company, told Financial Times.
“This is gone. We will never recover this deposit, ”he said, adding that the west fell in the west, he remains the“ Crown Jewel ”.
Sage, whose company also has a license in Greenland, said he was “very excited” with the US-Russian negotiations started by Trump. According to him, “for our company, it will be fantastic if there is a resolution.”
What does Donald Trump want from Ukraine?
Trump said last week that the US is entitled to $ 500 billion in Ukraine funds, including mineral deposits, oil, gas and infrastructure as ports, in exchange for previous military assistance.
This value is significantly higher than $ 69.2 billion in military assistance provided by Washington since 2014, according to the State Department.
Zelenskyy rejected the proposal, insisting that any mineral resources agreement should include US-conflict security guarantees, according to sources familiar with negotiations. In addition, he also seeks to involve the EU, the UK and Canada in the future exploitation of natural resources.
What are the complications?
Investors and experts highlight significant barriers for the rapid development of these projects: complex bureaucracy, government regulations, limited access to geological data and challenges to ensure land.
In addition, Russian attacks on energy infrastructure forced some mining operations to use generators, increasing extraction and transportation costs.
“Although Ukraine has mineral potential and an established steel sector, its future is uncertain,” said Jack Bedder, founder of the Project Blue Market Intelligence Group.
“This is not a good sign for project investments that can take decades to develop,” he added.
Ferrexpo, based in Switzerland, has a large iron mining operation in Ukraine. According to Peel Hunt analysts, the company needs “substantial investment” to support production after years of restricted activities.
“When hostilities cease, the biggest risk will be to secure qualified employees,” they said.
Volt Resources, listed in Australia, interrupted production on its Zavalievsky graffiti mine at the end of last year due to challenging conditions.
Zelenskyy calculated badly in his proposal to Trump?
Zelenskyy proposed for the first time offering mining rights to US companies as part of a “peace plan” last year.
However, European and Ukrainian authorities told FT that Zelenskyy may have made a strategic error by not including a total value or specific details.
“It was written as a bait for Trump, clearly,” said a high European employee. However, the lack of details allowed Trump to name its price.
“Some around Zelenskyy mourn the way this was treated … They lost control of the narrative,” he added.
A Ukrainian tall employee said Zelenskyy should have been “crystalline” about the funds to be linked to “future guarantees of US security assistance.”
Zelenskyy’s team now tries to present an attractive counterproposal. However, Trump’s approach annoyed European allies, with some comparing it to “mafia extortion tactics” and “colonialism”.
“It’s one thing to help free a land and then explore its resources,” said a second European officer. On the other hand, “it’s another to demand: ‘Pay this account for the help we have already provided.”
Source: https://www.ocafezinho.com/2025/02/18/trump-quer-riquezas-minerais-da-ucrania-em-troca-de-apoio/
