Ukraine’s Rare Earths

February 6, 2025

Ukraine’s geopolitical landscape has transformed dramatically due to ongoing conflict with Russia. Amidst this turmoil, Ukraine’s rich deposits of rare earths and other critical minerals have gained attention from global powers, particularly the United States. These resources are vital for various industries, including defence, technology, and renewable energy.

Ukraine’s Mineral Resources Overview

Ukraine is often referred to as the “bread basket of Europe” due to its fertile land. However, it also possesses mineral wealth.
The country is home to 22 of the 34 minerals identified by the European Union as critical.
Notable among these are rare earth elements such as lanthanum, cerium, neodymium, erbium, and yttrium.
These elements are essential for manufacturing electronics, renewable energy technologies, and defence systems.

Importance of Rare Earth Elements

Rare earth elements are a group of 17 metals crucial for modern technology.
They are used in electric vehicles, smartphones, and military applications.
For instance, neodymium is vital for wind turbines and electric vehicle batteries.
Ukraine’s reserves include quantities of titanium, lithium, and graphite, which are increasingly important in the global shift towards green energy.

Current Control of Resources

The ongoing war has severely impacted Ukraine’s ability to exploit its mineral resources. Approximately 40% of the country’s metal resources are currently under Russian occupation. Key coal deposits, necessary for steel production, are largely lost. However, Ukraine still retains control over lithium deposits in the central Kyrovohrad region and some other critical minerals.

Challenges in the Mining Sector

Despite its rich mineral resources, Ukraine faces challenges in attracting investment. Issues include complex regulatory processes and difficulties accessing geological data. Investors also cite the need for substantial upfront capital and time to develop mining projects. Nevertheless, the government estimates an investment potential of $12-15 billion in the mining sector by 2033.

Opportunities for International Collaboration

Ukraine is actively seeking partnerships with Western allies to develop its mineral resources. The government is negotiating deals with countries such as the United States, Britain, France, and Italy. These collaborations aim to exploit the country’s critical materials while boosting its economy amid ongoing conflict.

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