Ukraine Proposes Development of Rare Earth Elements to the U.S. to Continue Military Aid

Ukraine Proposes Development of Rare Earth Elements to the U.S. to Continue Military Aid

Kyiv, Ukraine — Ukraine has proposed a deal to U.S. President Donald Trump to continue American military aid in exchange for developing Ukraine's mineral industry, which could play a significant role in America's technology sector by supplying rare earth elements.

Trump had suggested such a deal earlier this month, and it was initially proposed last year by Ukrainian President Volodymyr Zelenskyy as part of a plan to strengthen Ukraine's position in future negotiations with Moscow.

Andrii Yermak, the Chief of Staff to the President of Ukraine, said in an exclusive interview, "We have huge potential in the territory we control. We are eager to work, first and foremost, with our main partner, the United States, to develop this mineral industry."

Rare earth elements are a group of 17 elements essential for producing many types of technology, including mobile phones, hard drives, and electric and hybrid vehicles.

Ukraine’s rare earth elements remain largely untapped due to the war and state policies regulating the mineral industry. Additionally, Ukraine lacks sufficient information for the development of rare earth mining.

The future outlook for Ukraine’s mineral industry is promising, particularly as the country holds large reserves of titanium and lithium, which are critical for the aerospace, medical, and automotive industries. In 2021, Ukraine's mineral industry contributed 6.1% of the country’s Gross Domestic Product (GDP) and 30% of its exports.

However, 40% of Ukraine’s mineral resources are currently under Russian occupation, which negatively impacts the country’s economic future. Ukraine has argued that it is in the U.S.'s interest to develop the remaining resources before further Russian advances take control.

The European Commission has identified Ukraine as a potential supplier of more than 20 critical raw materials, and they believe that if Ukraine joins the European Union, it could strengthen the European economy.

The details of the deal are likely to be discussed in meetings between U.S. and Ukrainian officials. Ukrainian businesspeople have stated that U.S. companies have shown interest, but finalizing a deal may require geological surveys, legal conditions, and specific contractual negotiations.

Even in the event of a ceasefire, it is unclear what kind of security guarantees companies would need to operate in Ukraine, and the financial terms of any agreements between Ukraine and U.S. companies remain uncertain.