What minerals does Ukraine have and what are they used for?

According to a BBC report, a senior official in Kyiv revealed that Ukraine has agreed in principle to a major deal that would allow the United States to access Ukraine's mineral resources. This agreement has been a core point of contention between the presidents of the two countries, and Kyiv is facing increasing pressure from Washington to sign the agreement. The agreement is expected to bring significant economic benefits to Ukraine.

Ukraine possesses abundant mineral resources. According to Kyiv's estimates, Ukraine holds approximately 5% of the world's "critical raw materials." This includes about 19 million tons of proven graphite reserves, which the Geological Survey of Ukraine says makes Ukraine one of the "top five leading countries in the world" for graphite supply. Graphite is used in the manufacture of batteries for electric vehicles. In addition, Ukraine has 7% of Europe's titanium supply, a lightweight metal widely used in everything from aircraft to power plant construction. At the same time, Ukraine also holds a third of Europe's lithium deposits, a key component in current batteries.

Ukraine also holds elements such as beryllium and uranium, both of which are essential for nuclear weapons and nuclear reactors. In addition, reserves of copper, lead, zinc, silver, nickel, cobalt, and manganese are also considerable. More importantly, Ukraine possesses significant deposits of rare earth metals. Rare earth metals are a group of 17 elements used to produce weapons, wind turbines, electronics, and other products vital to the modern world.

However, some mineral resources have already been seized by Russia. Ukrainian Economy Minister Yulia Svyrydenko said that $350 billion (£277 billion) worth of resources are currently located in occupied territory. An assessment conducted in 2022 by Canadian geopolitical risk consultancy SecDev showed that Russia has occupied 63% of Ukraine's coal mines, as well as half of its manganese, cesium, tantalum, and rare earth deposits. SecDev head Dr. Robert Muggah said these mineral resources add a "strategic and economic dimension" to Russia's continued aggression. He believes that by occupying these resources, Moscow is depriving Ukraine of revenue streams, expanding its own resource base, and influencing global supply chains.

Dr. Muggah explained that critical minerals are the "foundation of the 21st-century economy." They are key to renewable energy, military applications, and industrial infrastructure, and play an "increasingly strategic role in geopolitics and geoeconomics." Furthermore, the United States is keen to reach an agreement on Ukrainian mineral resources because it wants to reduce its dependence on China. Data from Geologic Investment Group shows that China controls 75% of the world's rare earth deposits. In December 2023, China banned the export of certain rare earth minerals to the United States, a year after it had already restricted mineral exports to the United States.

Some commentators have described the U.S. proposal as "colonialism," but Kyiv is interested in joint exploration of its resources. According to data from the World Economic Forum, Ukraine has about 20,000 deposits covering 116 types, but only about 15% of the mining sites were actively developed at the time of Russia's full-scale invasion in 2022. For example, the country's substantial lithium deposits remain largely undeveloped. Similarly, rare earth deposits are known to exist, but no mining has taken place due to a lack of investment. Iryna Suprun, CEO of Ukrainian mining consultancy Geologic Investment Group, said that developing these mineral resources is extremely difficult and costly. She believes that if Ukraine can attract U.S. investors to help develop its natural resources, it will greatly benefit the country's economy. Ms. Suprun explained: "We will get the technology that our mining industry is sorely lacking. We will get capital. This means more jobs, taxes. We will receive income from the development of mineral resources."