Trump wants Ukraine's rare minerals: What makes them so valuable?

For Ukraine, leveraging its mineral wealth could yield economic gains - but only with strategic agreements. Ukrainian President Volodymyr Zelenskyy seeks security guarantees in any potential deal

Ukraine’s vast mineral reserves have taken centre stage in international negotiations. US President Donald Trump is pushing for a deal that would give the US partial access to the country’s resources.

 

Trump has said that Ukraine’s mineral wealth could be worth “trillions of dollars” and suggested that it should be used to offset the cost of US aid. Meanwhile, Ukrainian President Volodymyr Zelenskyy has described the country’s resources as “priceless” and is seeking security guarantees as part of any agreement.

 

The growing demand for critical minerals and the global race to reduce reliance on China have heightened interest in Ukraine’s deposits. But what are these minerals in Ukraine and what are they worth?

 

 

What minerals does Ukraine have?

Ukraine is believed to hold reserves of several rare earth elements, which are key materials used in military, technology, and renewable energy industries.

 

Role of rare earth minerals in the military

Rare earths, a group of 17 chemically similar elements, are essential for manufacturing missiles, lasers, tanks, smartphones, and clean energy technologies.

 

China currently dominates global rare earth processing, making alternative sources, such as those in Ukraine, particularly significant. However, while Ukraine is known to have some rare earth deposits, the full extent of these resources is unclear. Geological data from the Soviet era is outdated, and further surveys are needed to confirm the size and viability of these reserves.

 

Scandium, one of Ukraine’s rare earth elements, is used in military equipment and high-performance materials. Other rare earths found in the country include neodymium, praseodymium, dysprosium, and yttrium, all of which are crucial for advanced technologies.

 

What other critical minerals does Ukraine have?

Beyond rare earths, Ukraine has reserves of several other critical minerals essential for defence and industrial production. These include:

• Titanium – Used in aerospace manufacturing and military applications
• Graphite – A key material in batteries and electric vehicles
• Lithium – Vital for rechargeable batteries and clean energy storage
• Uranium – Crucial for nuclear energy production

 

Ukraine’s hydrocarbon resources lie in occupied regions

In addition to minerals, Ukraine has significant oil, natural gas, and coal reserves. However, much of its hydrocarbon wealth is in regions currently occupied by Russia. This includes offshore natural gas reserves near Crimea and coal deposits in eastern Ukraine. More than half of Ukraine’s coal reserves and about 20 per cent of its natural gas fields are under Russian control.

 

Moscow has even hinted at the possibility of granting the US access to these resources, further complicating negotiations.

 

What are Ukraine’s rare mineral reserves worth?

Economists estimate that Ukraine’s hydrocarbon resources alone could be worth around $360 billion, as reported by NBC News. Meanwhile, broader estimates suggest that the country’s total mineral and natural resource wealth could be valued in the trillions of dollars.

 

As far as the rare earth minerals are concerned, extraction and processing challenges mean that the economic potential and exact value of these resources remains difficult to estimate.

 

Trump has claimed that Ukraine could provide the US with $500 billion worth of rare earth minerals, but industry analysts dispute this figure. The entire global market for rare earths is estimated to be worth just $12 billion, according to NBC News, making Trump’s valuation unrealistic.

 

While Ukraine is known to have some rare earth deposits, the full extent of these resources is unclear.  Much of the country’s geological data dates back to the Soviet era and is considered unreliable. New surveys are needed to determine the full extent of Ukraine’s rare earth deposits.

 

Mining minerals: A major challenge in Ukraine

While Ukraine’s mineral wealth is attracting international interest, realising its full economic potential will not be straightforward. Extracting and processing these resources requires stable infrastructure, secure supply chains, and long-term investment, including rebuilding Ukraine’s war-damaged power grid. The war in Ukraine has disrupted much of the country’s industrial capacity, and restoring it will be a lengthy and expensive process.

 

At present, no large-scale rare earth projects are underway in the country, and media reports estimate that it could take up to a decade to establish a functioning supply chain.

 

Why does the US want Ukraine’s rare minerals?

Global competition for critical minerals has intensified, particularly as the transition to clean energy and advanced technology accelerates. Countries such as the US and European nations are looking to reduce their reliance on China for rare earth processing, and Ukraine’s resources could play a role in diversifying supply chains.

 

China currently dominates global rare earth processing, making alternative sources, such as those in Ukraine, particularly significant.

 

Securing access to Ukraine’s mineral wealth could help the US reduce its dependence on China and Russia, both of which dominate global critical mineral supply chains. Washington has long viewed this reliance as a strategic vulnerability, particularly in light of geopolitical tensions. For Ukraine, leveraging its mineral wealth could bring economic benefits – but only if the right agreements are in place.

 

During their meeting in Washington, the two leaders were expected to work out the details of a potential minerals deal. While their positions on the terms of the agreement differ – particularly on security commitments – both US and Ukrainian officials were keen to secure access to Ukraine’s resources.

 

Moscow has even hinted at the possibility of granting the US access to Ukraine’s resources, further complicating negotiations.