Ukraine’s minerals have become central to global geopolitics, with the US president, Donald Trump, seeking a deal with Ukraine’s president Volodymyr Zelensky to access them.
On Thursday, Ukrainian officials announced they had signed an outline of a minerals deal with the US and said a final accord could be reached by the end of next week.
Ukrainian economy minister, Yulia Svyrydenko, took to X and shared photos of her and US treasury secretary, Scott Bessent, signing the outline of the preliminary minerals deal separately.
Ukraine is often recognised for its vast agricultural lands and industrial heritage, but beneath its surface lies one of the world’s most remarkable geological formations, the “Ukrainian Shield”.
This massive, exposed crystalline rock formed over 2.5 billion years ago, stretches across much of Ukraine. It represents one of Earth’s oldest and most stable continental blocks.
The formation has undergone multiple episodes of mountain building, the formation and movement of magma and other change throughout time.
These geological processes created favourable geological conditions for forming several mineral deposits including lithium, graphite, manganese, titanium and rare earth elements.
All these are now critical for modern industries and the global green energy transition.
Ukraine has deposits containing 22 of 34 critical minerals identified by the European Union as essential for energy security. This positions Ukraine among the world’s most resource-rich nations.
As the world races to decarbonise, demand for critical minerals is skyrocketing. Electric vehicles, wind turbines, solar panels and energy storage systems all require lithium, cobalt and rare earth elements which Ukraine has in abundance.
The price of lithium has surged from US$1,500 (£1,164) per ton in the 1990s to around $20,000 per ton in recent years. Demand is expected to increase nearly 40-fold by 2040.
According to the International Energy Agency, the number of electric vehicles is projected to exceed 125 million by 2030. Similar growth is expected for other battery metals. Each electric vehicle requires significantly more lithium than conventional electronics. For example, a Tesla Model S battery requires approximately 63kg of high-purity lithium.
Ukraine has three major lithium deposits. These include Shevchenkivske in the Donetsk region as well as Polokhivske and Stankuvatske in the centrally located Kirovograd region – all within the Ukrainian Shield. Despite the significant mineral potential, many of Ukraine’s mineral deposits have remained largely unexplored due to the war with Russia, which has disrupted mining operations and damaged infrastructure.
The Shevchenkivske lithium deposit contains high concentrations of spodumene — the primary lithium-bearing mineral used in battery production. Its reserve is estimated as 13.8 million tonnes of lithium ores. That said, extracting it requires an estimated US$10–20 million in exploration investment before mining can begin.
