12 hours ago
Last Updated:February 22, 2025, 08:51 IST
Trump and his negotiators have launched an intense pressure campaign against the Ukrainian president, implying that the United States might abandon the war-torn nation and align with Russia
US President Donald Trump with Ukraine's President Volodymyr Zelensky | AP Image
US-Ukraine Mineral Deal: The United States is looking to secure a deal with Ukraine to access their deposits of critical minerals that are essential for advanced technology manufacturing such as semiconductors and have significant military applications.
White House Security Adviser Mike Waltz on Friday said that Ukrainian President Volodymyr Zelenskyy is set to sign a minerals agreement with the United States soon, as part of wider discussions aimed at ending the war with Russia.
“Here’s the bottom line: President Zelenskyy is going to sign that deal, and you will see that in the very short term," Waltz said during remarks at the Conservative Political Action Conference (CPAC).
The move followed a week in which President Trump, initially rejected his efforts to secure an agreement, intensified his stance by criticising Ukraine and suggesting he might align with Russia in efforts to end the war.
Trump stated at the White House that he was close to finalising a deal that could bring up to $500 billion to the United States. “We’re hoping to sign an agreement soon," he remarked.
The US has offered to gain access to 50 per cent of Ukraine’s crucial mineral resources, including aluminium, gallium and titanium, in exchange for assistance in the conflict with Russia. While Ukrainian President Volodymyr Zelenskyy is open to the proposal, seeking more favourable terms.
Zelensky, appearing to ease the tensions that had risen with President Trump over the deal, said that his country was working on a draft agreement with the United States.
Notably, the Trump administration has placed the so-called agreement as a way for American taxpayers to recoup some of their investment in Ukraine’s defence, with US aid to Ukraine having exceeded $175bn, according to Waltz.
Why US Wants Ukraine’s Mineral Resources?
Ukraine is rich in mineral resources that are vital for producing a wide range of products, from advanced weapon systems to clean energy solutions like electric vehicles, as well as electronics and semiconductors.
These minerals are rare and challenging to extract, which makes them highly valuable. What further elevates their significance for the US and the West is that China also holds large reserves of these minerals.
When discussing these resources, two key categories are critical: rare earth elements and critical minerals. There are 17 rare earth elements, including the 15 Lanthanides (from atomic numbers 57, Lanthanum, to 71) along with Scandium (atomic number 21) and Yttrium (atomic number 39).
Minerals are considered ‘critical’ by countries based on their importance for economic growth and national security, and their scarcity. In 2023, India identified 30 critical minerals.
According to a Financial Times report, Trump has claimed that the U.S. is owed $500 billion worth of Ukraine’s resources, including minerals, fuel, and infrastructure such as ports, in exchange for military support against Russia.
Possible Hurdles On Trump’s Way
While the US is expressing a positive outlook towards striking the critical mineral deal with Ukraine, here are some of the roadblocks that may stand as test of time:
Legal restrictions: Any deal would need to comply with Ukraine’s laws. As Kseniiia Orynchak, founder of the Association of Mining Industry of Ukraine, told AP, “Subsoil belongs to Ukrainians under the constitution."
Lack of clarity on resources: There is limited information about the exact quantity and quality of the mineral resources, as they remain largely unexplored with minimal extraction happening. Gracelin Baskaran, director at the US Center for Strategic and Studies, stated, “The data is not modern, we have very little information about what’s there." Many geological surveys were conducted by the Soviet Union before Ukraine gained independence in 1991.
Existing deal with the EU: Ukraine already has an agreement with the European Union to extract these resources. A ‘strategic partnership on raw materials’ was signed between the EU and Ukraine in July 2021, months before Russia’s invasion in February 2022.
Russian occupation: A large portion of these minerals is located in areas currently under Russian occupation. According to Reuters, “Russian forces, which have already seized a fifth of Ukraine including reserves of rare earths, are now little more than 4 miles from the Shevchenko lithium deposit."
Meanwhile, Trump and his negotiators have launched an intense pressure campaign against the Ukrainian president, implying that the United States might abandon the war-torn nation and align with Russia, which invaded its western neighbour three years ago.
Location :United States of America (USA)
First Published:February 22, 2025, 08:51 IST
News world Trump Aims To Strike Critical Mineral Deal With Ukraine. Why It Matters And What Could Stand In The Way
