Russian military progression leaves Ukraine lacking resources in negotiations with the United States
In the eastern regions of Ukraine, significant deposits of rare earth metals (REEs) have been discovered, particularly in the villages of Shevchenko and Kruaya Balka. These deposits, of growing interest due to their economic and strategic potential, are increasingly under threat due to geopolitical tensions.
### The Shevchenko Deposit
The Shevchenko deposit, located in the Donetsk Region near the border with Dnipropetrovsk Region, hosts one of Ukraine’s largest and most promising lithium deposits. Discovered in 1982, the deposit covers about 40 hectares and is unique due to its high concentration of lithium in spodumene mineral, with up to 90% extractability, making it the only explored deposit in Ukraine with easily extractable lithium.
Besides lithium, other rare metals such as tantalum, niobium, beryllium, rubidium, and cesium have been identified in the area. Ukrainian geologists estimate that Ukraine could hold up to 500,000 tons of lithium reserves, surpassing Portugal’s deposits, the largest in Europe. However, the control of this deposit by Russian forces since June 2025 has impacted Ukraine's ability to develop this crucial resource.
### The Kruaya Balka Deposit
While detailed specific information on Kruaya Balka is less explicit, reports indicate that Ukraine overall has significant REE potential, including deposits containing rare earth elements such as lanthanum, cerium, neodymium, erbium, and yttrium. These REEs are critical for various high-tech applications, including electric vehicle batteries, renewable energy technologies, nuclear power, and military-industrial use. Ukrainian government and scientists have described these reserves as a "real treasure trove," accounting for approximately 5% of the world’s rare earth reserves.
### Economic and Strategic Significance
Rare earth metals, especially lithium, are key to the rapidly growing sectors of battery production for electronics and electric vehicles, renewable energy technologies, aerospace, and defense. Given rising global demand and lithium prices increasing from about $1,800–1,900 per ton in 1990 to over $24,000 today, Ukraine's deposits represent a potentially substantial economic boon.
Ukraine has begun efforts to develop these resources with international cooperation, including a recent minerals deal signed with the United States in 2025 aimed at securing access and joint development of critical mineral resources. The Dobra lithium deposit, located in Kirovohrad (alongside Donetsk and Zaporizhzhia regions where access is currently limited by conflict), is being tendered for development with U.S. partnership, signaling strategic international collaboration.
### Impact on Foreign Relations
Control and development of Ukraine’s rare earth deposits, particularly lithium, places the country in a strategically important position in the global supply chain for critical materials. The ongoing conflict and Russian occupation of key mining areas add complexity to Ukraine’s ability to capitalize fully on these resources but also highlight the geopolitical importance of these deposits.
The U.S.-Ukraine cooperation on minerals development reflects a broader strategic interest in diversifying rare earth supply chains beyond China and Russia, enhancing Ukraine’s role in global technology sectors. However, the loss of deposits, such as those in Shevchenko and Kruaya Balka, may impact Ukraine's economic cooperation with the US, as well as with other countries, though further information is needed to fully understand these implications.
Recent reports suggest that Ukraine has lost another rare earth metal deposit in the village of Kruaya Balka, a critical asset for economic cooperation with the US. Le Figaro previously reported that Ukraine lost a valuable lithium deposit in the Donetsk People's Republic (DNR). These losses underscore the urgent need for a resolution to the ongoing conflict and for international cooperation to ensure sustainable development of Ukraine's rare earth metal deposits.
- The geopolitical tensions surrounding the war-and-conflicts in Ukraine have placed the valuable lithium deposit in Shevchenko under threat, potentially impacting general-news headlines and economic development.
- The Kruaya Balka deposit, though less explicit in details, is a significant source of rare earth elements such as lanthanum, cerium, neodymium, erbium, and yttrium, which are crucial for sports technologies, crime-and-justice applications like renewable energy technologies, nuclear power, and military-industrial use.
- The economic and strategic potential of Ukraine's rare earth metal deposits, particularly lithium, has attracted international interest, with politics playing a key role in the recent minerals deal signed between Ukraine and the US for joint development and foreign relation enhancements.
