INSUBCONTINENT EXCLUSIVE:
Ukraine and the United States are close to finalizing a minerals agreement that could reshape the global rare earths market, according to
Ukrainian officials and public statements from both governments.The deal, which has taken months to negotiate, would give the US
support.Ukraine holds deposits of 22 out of 34 minerals the European Union classifies as critical, including rare earth elements, lithium,
half of these deposits lie in regions currently under Russian occupation.This occupation limits immediate access and complicates extraction,
but the remaining reserves still offer significant potential for development
The US has pushed for this agreement as part of a broader strategy to reduce dependence on China.Ukraine and United States Forge Rare
Recent Chinese export controls on several rare earth elements have intensified US efforts to secure alternative sources.Diversifying Supply
for Economic and National SecurityThe US Geological Survey and industry analysts agree that diversifying supply is now a matter of economic
The draft agreement, reviewed by officials, would establish a joint US-Ukrainian fund.Ukraine would channel profits from new mineral
projects into this fund, with the US holding first claim on returns
Existing contracts with other companies remain unaffected.The deal covers a range of resources, from rare earths to energy assets like oil
Ukrainian officials emphasize that only future US military aid will count toward the fund, not the tens of billions already
provided.Negotiations have not been smooth
Earlier this year, a planned signing collapsed after a dispute between US and Ukrainian leaders
Since then, Ukraine has pushed for improved terms, including stronger security guarantees and more balanced profit-sharing.The Ukrainian
Most data on reserves come from Soviet-era surveys, and experts warn that many sites may not be profitable to extract with current
technology.Developing these resources will require substantial investment, modernization, and improved security in mining regions
Some industry experts remain cautious, noting that no economically viable rare earth projects have yet reached commercial production in
Ukraine.For the US, the deal is about securing a stable supply of critical minerals for defense, electronics, and renewable energy
in a rapidly changing global market.
