Ukraine's untapped mineral wealth revealed to be far greater than anticipated

By Akbar Novruz

Ukrainian President Volodymyr Zelensky has reportedly resisted an initial U.S. attempt to secure a controlling stake in Ukraine’s vast critical mineral wealth in exchange for continued military and economic aid. According to Reuters, the U.S. proposed taking ownership of 50% of Ukraine’s critical minerals. While Zelensky did not outright reject the proposal, he indicated that it lacked the necessary security guarantees Kyiv requires.

This struggle over Ukraine’s natural resources underscores a broader geopolitical contest. The value of Ukraine’s mineral wealth is not merely the $500 billion figure often cited by U.S. officials— but looks like it is far greater.

Ukraine's untapped treasure trove

Ukraine is home to approximately 5% of the world’s mineral resources, despite occupying just 0.4% of the Earth's surface. A 2022 study by Hanna Liventseva, chair of Ukraine’s Association of Geologists, highlighted the country’s geological diversity, which spans all three main components of the Earth's crust.

According to Ukrainian government data, Ukraine possesses deposits of 22 out of the 34 minerals classified as critical by the EU. These include rare earth elements such as lanthanum, cerium, neodymium, erbium, and yttrium—key components in high-tech industries, from electric motors to wind turbines and nuclear power stations.

Before the war, Ukraine was a major supplier of titanium, producing around 7% of global output in 2019. It also boasts significant lithium reserves, estimated at 500,000 metric tons—the largest in Europe—and holds nearly one-fifth of the world's graphite, a crucial material in nuclear power and battery production.

So, what’s all the fuss about these so-called 'critical' minerals?

Apparently, in total, Ukraine’s underground resources are valued at an impressive $18 trillion. Beyond rare earths, the country is among the world’s top 10 producers of titanium, zirconium, graphite, and manganese, minerals that are indispensable for industries ranging from aerospace to defense and renewable energy.

In 2022, the U.S. Geological Survey (USGS) released a list of 50 minerals deemed essential for national security, economic development, and infrastructure. These include:

• Lithium, cobalt, and graphite, essential for battery manufacturing
• Arsenic, vital for semiconductors
• Beryllium, used in aerospace and defense alloys
• Indium, crucial for touchscreen technology
• Tellurium, a key element in solar power production

Under U.S. law, this list is updated every three years, meaning a new version is expected this year. The evolving political landscape could see certain minerals gaining or losing their "critical" designation, reflecting shifts in global priorities.

Why it matters?

Rare earth elements (REEs), a subset of 17 critical minerals, are indispensable for modern technology and defense systems. Despite their name, REEs are not actually rare, but their extraction and refining are environmentally destructive and concentrated in a few key locations—primarily China.

These elements have strategic applications:

• Europium is used in nuclear power control rods
• Dysprosium, gadolinium, and praseodymium are found in magnets used in mobile phones and wind turbines
• Holmium and ytterbium play a role in laser technology

Given their significance, countries that secure access to these resources position themselves at the forefront of high-tech industries, electric transportation, energy transitions, and military advancements. Lithium and cobalt are essential for electric vehicles and energy storage, while rare earths drive technological innovation and green energy transitions. Titanium and other key minerals are vital for military production. The ability to extract and process these resources strengthens an economy and boosts its position in international trade.

“Some around Zelenskyy regret the way it was handled?.?.?.?they lost control of the narrative,” the official added.

A senior Ukrainian official said Zelenskyy should have been “crystal clear” about those resources being tied “to future guarantees of [American] security assistance”.

Zelenskyy’s team is scrambling to come up with an attractive counterproposal. The Trump approach has enraged his European allies, with officials at the Munich Security Conference last weekend comparing it to “mafia blackmail tactics”, “usury” and “colonialism”.

“It’s one thing to say we will help you liberate your land and then exploit the resources under the ground there,” said a second European official. “It’s another to demand: ‘Pay this bill for the help we’ve already provided’.”

One thing is sure, control over Ukraine’s resource wealth is not just about economic gains—it is about power. Nations with access to critical minerals can enhance their defense industries, dominate strategic supply chains, and exert greater diplomatic influence.