On Wednesday, April 30, 2025, the United States and Ukraine officially signed a landmark agreement granting the U.S. special access to Ukraine’s critical minerals, including rare earth metals.
In return, the deal also involves U.S. funding for the reconstruction of Ukraine after the devastating effects of war.
According to Reuters on Thursday, May 1, 2025, Ukraine is known to hold significant reserves of rare earth metals, which are crucial for high-tech industries and defense systems. These metals are used in the production of specialized magnets for electric vehicles, mobile phones, missile systems, and various other electronic equipment.
A survey by the U.S. Geological Survey (USGS) identifies at least 50 minerals as “critical,” including nickel and lithium. These critical minerals are deemed essential for industries such as defense, high-tech equipment, aerospace, and green energy.
Furthermore, Ukraine is home to reserves of 22 out of the 34 critical minerals identified by the European Union.
These include materials used in industries like construction, ferro alloys, precious and non-ferrous metals, as well as several rare earth elements.
The Ukrainian Geological Institute reports that the country possesses rare earth metals such as lanthanum and cerium, which are used in TVs and lighting. It also holds neodymium, which is vital for wind turbines and electric vehicle batteries, as well as erbium and yttrium, which are used in nuclear energy and lasers.
The World Economic Forum highlighted Ukraine as a potential major supplier of lithium, beryllium, manganese, gallium, zirconium, graphite, apatite, fluorite, and nickel.
The National Geological Service of Ukraine confirmed that the country has one of the largest lithium reserves in Europe, with confirmed reserves amounting to 500,000 metric tons. This is a critical source for batteries, ceramics, and glass production.
Ukraine also has substantial titanium reserves, mostly located in the northwestern and central parts of the country, while lithium is found in the central, eastern, and southeastern regions.
Key Details of the U.S.-Ukraine Agreement
So, what does the agreement entail, and what will Ukraine gain from allowing U.S. control over its rare earth metals?
The two countries signed the agreement in Washington after months of intense negotiations, which faced delays at the final stages. The agreement establishes a joint investment fund aimed at assisting Ukraine’s post-war reconstruction efforts. Additionally, the deal underscores President Trump’s commitment to seeking a peaceful resolution to the ongoing Russia-Ukraine war, now in its third year.
U.S. Treasury Secretary Scott Bessent and First Deputy Prime Minister of Ukraine Yulia Svyrydenko were photographed signing the agreement, which was shared by the U.S. Department of the Treasury on X (formerly Twitter). The department described the agreement as “a clear demonstration of the Trump administration’s commitment to a free, sovereign, and prosperous Ukraine.”
Svyrydenko posted on X, stating that the agreement will lead to U.S. contributions to the reconstruction fund.
She also mentioned that the deal includes new forms of assistance, such as the provision of air defense systems for Ukraine.