Donald Trump has stated that he wants Ukraine to guarantee a supply of rare earth metals to the USA as a form of payment for US support of Ukraine against Russia.
He calls this “equalization”.
Rare earths are a group of 17 metals used to make magnets that turn power into motion for electric vehicles, cellphones and other electronics. There are no known substitutes, and therefore are precious and essential.
The US Geological Survey indicated in a report that the United States depends on 80% imports for some critical minerals, while China is the leading producer of such materials, including rare earths, and the US also relies on Malaysia, Japan and Estonia.
Despite the fact that it has reserves, the US has a single rare earths mine.
Ukraine has stated it possesses strategic rare earth metals such as beryllium in six locations, but reserves are insufficient.
But the European Commission describes Ukraine as “a potential source of over twenty critical raw materials”.
Forbes Ukraine estimated that Ukraine’s mineral resources amounted to 111 billion tons, worth $14.8 trillion — mostly coal and iron ore. Unfortunately, over 70% of these resources were in Donetsk and Lugansk, which Moscow now happily controls.
The Washington Post estimated reserves at much higher, at $26 trillion — again, nearly half of that is now under Russian control. Russia continues to advance on large lithium deposits in Donetsk and has successfully usurped another deposit at Kruta Balka in the Zaporizhzhia region.
Lithium is the most tempting material, essential for electric vehicle battery.
Forbes Ukraine wrote in 2023 that Ukraine has 33 million tons of lithium ore, worth $38 billion, says Forbes Ukraine.
Ukraine also accounts for 7% of global titanium production, used in aerospace and electronics.
Ukraine also normally produces most of the world’s graphite, at circa 10,000 tons per year — that is, before the war, which caused production to drop by a whopping 95%.
The US needs graphite for batteries.
The same is applicable for iron. Ukraine also has substantial reserves of uranium, manganese, mercury and gallium.
