Ukrainian President Volodymyr Zelensky announced a landmark critical minerals agreement with the United States on April 29, 2025, describing it as a “truly equal” partnership to bolster Ukraine’s economy and global supply chains.
Signed during a Washington visit, the deal grants US firms access to Ukraine’s vast reserves of lithium, cobalt, and rare earths, estimated at $500 billion, in exchange for technology transfers and joint ventures. The agreement aims to reduce Western reliance on Chinese minerals, critical for batteries and renewable energy, while supporting Ukraine’s reconstruction amid a $486 billion war recovery cost.
The partnership includes a $1 billion US investment in Ukraine’s mining sector, with companies like BHP and Rio Tinto set to develop facilities in Donetsk and Zaporizhzhia by 2027. Ukraine, holding 5% of global lithium deposits, will retain 60% of profits and prioritize local employment, with 10,000 jobs projected. Zelensky emphasized the deal’s transparency, with contracts audited by international firms to prevent corruption, a nod to Ukraine’s 33rd ranking on the 2024 Corruption Perceptions Index. The agreement also includes environmental safeguards, addressing concerns over mining’s impact on Ukraine’s 20% arable land loss since 2022.
The deal strengthens US-Ukraine ties as military aid debates intensify, with $61 billion in US support approved in 2024. It counters Russia’s control of 15% of global rare earths, aligning with NATO’s strategic goals. Critics, however, warn of security risks, as 30% of Ukraine’s mineral-rich regions remain contested. The partnership follows a 2024 EU-Ukraine mineral pact, positioning Kyiv as a key supplier amid a 25% global demand surge by 2030. Zelensky’s administration projects $10 billion in annual mineral exports by 2030, boosting Ukraine’s 3.5% GDP growth forecast, but success hinges on stabilizing frontline regions and ensuring equitable profit-sharing.