Trump’s Ukraine Deal: U.S. Access to Rare Earth Minerals & Economic Challenges
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Former U.S. President Donald Trump is almost done with a deal with Ukraine that could give the U.S. first access to Ukraine’s huge natural riches. Although this would appear like a significant gain, the true worth of these resources is unknown since earlier surveys from the Soviet era never adequately evaluated the expenses and difficulties of obtaining them.
Economic Pravda, a Ukrainian news source, claims that the agreement calls for Ukraine to set aside 50% of its state-owned natural resource earnings into a specific investment fund for the nation. One important component is lacking, though: this pact does not include any American security assurances. Washington might still benefit greatly, though, because Ukraine’s Ministry of Natural Resources claims the nation possesses about 5% of the world’s most important raw minerals.
Trump’s Strategic Move in Securing Ukraine’s Resources
Making batteries, radar systems, and military armor depends on these materials—graphite, lithium, titanium, beryllium, and uranium. Should the United States get access, it might lessen its reliance on China, which now controls the world’s supply of these minerals. Still unclear, though, are Ukraine’s real reserves. Only roughly 8,000 of the 20,000 identified mineral sites in the nation are thought to be profitable for mining.
High Prices and Difficulties Not Minor
Development of Ukraine’s resources won’t be simple, even if they show value. Processing and mining these resources call for large expenditures; analysts estimate the development of just the top 10 mining locations might call for at least $15 billion. Years will pass in building new mines, processing factories, and transportation hubs.
Among Ukraine’s most promising locations, the Novopolatsk deposit has among the biggest rare earth reserves worldwide. The Ukrainian Geological Survey estimates, though, that establishing activities there would cost around $300 million. Which biggest challenge has to be surmounted? Extraction takes time and money as well.
The Hold China Has Over Rare Earths
About 90% of the rare earth minerals found worldwide are handled by China right now. Although some are produced by the United States and other countries, they lack the refining infrastructure required to handle them at mass. Thus, even if Ukraine begins mining these resources, they could still have to be transported to China for processing, so negating the goal of lessening reliance on Beijing.
Russian Rule Complicates the Bargain
Another significant problem is that much of Ukraine’s most important mineral riches lie under Russian control. According to Ukrainian Deputy Prime Minister Yulia Svyrydenko, Russia has seized important mineral and gas resources valued at around $350 billion.
Trump now must decide whether to try to negotiate a separate arrangement with Russia or boost backing for Ukraine to assist in reclaiming these seized areas.
Although securing Ukraine’s resources would advance America’s security and economic objectives, analysts at S&P Global caution that given the great technological difficulties and expenses involved, extracting these minerals might not even be profitable. One thing is obvious—whether Trump proceeds with this agreement or searches for another solution: this is a complicated problem with no simple answers.
Get the latest insights on Trump’s Ukraine resource deal, published on march 16, 2025
