President Donald Trump has proposed exchanging US aid to Ukraine for access to its rare earth minerals on Monday.
“We’re looking to do a deal with Ukraine, where they’re going to secure what we’re giving them with their rare earths and other things,” Trump said at the White House during an executive order signing ceremony.
The proposal comes after a Trump-ordered freeze on US foreign development aid. This has forced humanitarian organizations in Ukraine to suspend operations, but military assistance provided under the Biden administration remains unaffected.
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Ukraine holds deposits of more than 20 critical minerals including lithium, uranium, and titanium — essential for manufacturing electric car motors and wind turbines. Some consulting firms value these reserves at several trillion dollars, though experts say accurate assessment is difficult due to Russian occupation of certain regions.
Also read: China Has Quietly Spent $57 Billion to Control the World’s Critical Minerals
A senior Ukrainian official, speaking anonymously due to the sensitive nature of the discussions, said Ukraine would consider mineral deals if the US provides security guarantees against Russian advances. Russian forces currently operate within seven miles of major lithium deposits in the Donetsk region.
Ukraine had planned to sign a mineral cooperation agreement with the Biden administration in late 2024 but postponed it, waiting instead for Trump to take office, according to officials from both countries.
Also read: Critical Minerals Strategy Key to US Military Readiness, Pentagon Says
A Ukrainian delegation met with US business leaders in Washington in December to discuss potential production licenses. However, at a recent Kyiv conference, industry leaders highlighted significant obstacles to any immediate deals, including the need for extensive exploration to assess mineral deposits and administrative and legislative barriers to foreign investment.
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