In a move that could potentially reshape global supply chains, the U.S. is setting its sights on Ukraine’s vast reserves of rare earth minerals that are critical for everything from advanced technology to defense systems.  Recent developments indicate that a landmark deal is on the horizon, with U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy poised to sign an agreement that would grant the former access to these coveted resources. Ukraine, home to an estimated 5 per cent of the world’s rare earth reserves, offers an opportunity for the U.S. to reduce its dependence on China, which currently dominates the market.

News reports say Ukraine last mapped its rare earth metals several decades ago, mostly between the 1960s and 1980s when it was still part of the Soviet Union. The former director general of the Ukrainian Geological Survey is reported to have admitted that there was no modern assessment of rare earth reserves in Ukraine and that existing mapping had relied on old exploration methods. 

But, what are these rare earth minerals/metarials and how much are they worth?

According to a study by the World Economic Forum, the market for critical minerals has doubled to over $320 billion in the last five years and is expected to double again in the next five years. Despite the ongoing challenges, Ukraine, with vast reserves, holds immense potential to be a major global supplier. 

The east European nation has approximately 20,000 mineral deposits. Before Russia's full-scale invasion, only around 5,000 of these deposits were active, including 147 metalic and 4,676 of non-metalic mineral deposits. The nation has been a key potential supplier of rare earth metals, including titanium  (It holds the largest titanium reserves in Europe  -7 per cent of the world's reserves, and it is one of the few countries that mine titanium ores, crucial for the aerospace, medical, automotive and marine industries), lithium  (It has one of Europe's largest lithium reserves - estimated at 5,00,000 tonnes - vital for batteries, ceramics and glass), gallium (It is the fifth largest gallium producer - essential for semiconductors, and LEDs), beryllium. manganese, uranium, zirconium, graphite, apatite, fluorite and nickel. Besides, Ukraine has been a major producer of neon gas - supplying 90 per cent of the highly purified, semiconductor-grade neon for the US chip industry. 

However, Ukraine has a lot more deposits that are yet to be tapped. According to experts, these deposits would require very advanced technology and a consistent energy grid support for extraction as these fields present difficult hydrogeological conditions, to which only the U.S., China and Russia would have the proven technology to mine in a commercially viable way.