Why US is interested in Ukrainian rare earths and what deposits exactly Trump yearns for

The US has recently expressed interest in Ukrainian deposits. The country's minerals and rare earth elements may be exchanged for aid.

Earlier, as Reuters reports, President Volodymyr Zelenskyy said he was ready to conclude an agreement with US President Donald Trump that would see the US participate in the development of Ukraine's vast deposits of rare earth elements and other critical minerals. On February 3, Trump said he wanted Ukraine to supply the United States with rare earth elements in exchange for financial support for Kyiv's war against Russia. Zelenskyy expressed this idea in his "victory plan" strategy, which he presented to Kyiv's allies, including Trump, last fall.

Among other things, the plan envisages reaching agreements with foreign partners on joint access to Ukraine's strategically valuable resources. Rare earth metals are a group of 17 metals used to make magnets that convert energy into motion for electric cars, mobile phones, missile systems, and other electronics.

China, which Trump has threatened with a trade war, is the world's largest producer of rare earth metals and many other important minerals. The U.S. Geological Survey considers 50 minerals to be critically important, including several types of rare earth elements, nickel and lithium. According to the Ministry of Economy, Ukraine has deposits of 22 out of 34 minerals identified by the European Union as crucial. These include industrial and construction materials, ferroalloy, precious and non-ferrous metals and some rare earth elements. Ukraine also has significant coal reserves, but most of them are currently located in the occupied territory.

According to estimates by Ukrainian think tanks We Build Ukraine and the National Institute for Strategic Studies, citing data for the first half of 2024, about 40% of Ukraine's metal resources are currently occupied by Russia. They did not provide a detailed breakdown. Since then, Russian troops have continued to make steady progress in eastern Donetsk region. In January, Ukraine closed its only coking coal mine outside the city of Pokrovsk.

There is a lithium deposit in the central Kropyvnytskyi region. Oleksiy Soboliev, First Deputy Economy Minister, said in January that the government is working on agreements with Western allies, including the United States, Britain, France, and Italy, on projects related to the development of critical materials. The government estimates the total investment potential of the sector at around $12-15 billion by 2033. The State Service for Geology and Subsoil of Ukraine reported that the government is preparing about 100 sites for joint licensing and development. Despite the fact that Ukraine has a highly skilled and relatively inexpensive labor force and developed infrastructure, investors highlight a number of obstacles to investment. These include inefficient and complicated regulatory processes, as well as difficulties in accessing geological data and obtaining land plots.

As reported, Donald Trump has already threatened the European Union with trade duties. The new US administration is ready to start a trade war with the EU if Europe does not buy more oil and gas from the United States.

According to Zelenskyy, Trump's intentions are quite logical, since imports of Russian energy resources to Europe, which contradicts US security guarantees, are still taking place.

Only verified information is available on OBOZ.UA Telegram channel and Viber. Do not fall for fakes!