In a significant development amid the ongoing war with Russia, Ukraine's Prime Minister Denys Shmyhal announced that Ukraine and the United States have agreed on a major minerals deal. This deal centers around Ukraine's vast deposits of critical minerals crucial to global industries, including electric vehicle production, defense, and energy.

Shmyhal revealed that the agreement includes the establishment of a joint investment fund to support Ukraine’s reconstruction efforts post-conflict. This fund will be managed collaboratively by both Ukraine and the United States on “equal terms,” aiming to harness revenues from Ukraine’s abundant mineral resources. The U.S. is set to benefit from access to Ukraine’s vast reserves of lithium, titanium, graphite, and rare earth metals, all of which are vital for renewable energy to aerospace and defense industries.

Ukraine is home to vast reserves of critical raw materials, accounting for an estimated 5% of the world's supply. These include significant quantities of coal, gas, oil, and uranium, which are valued at billions of dollars. Among Ukraine's key resources:

•             19 million tonnes of proven graphite reserves, essential for manufacturing electric vehicle batteries.

•             One-third of Europe's lithium deposits, a crucial component in modern battery technology.

•             Prior to Russia's full-scale invasion three years ago, Ukraine was responsible for 7% of global titanium production, a metal vital for industries such as aerospace and power generation.

Additionally, Ukraine holds substantial deposits of rare earth metals, a group of 17 elements critical for producing weapons, electronics, wind turbines, and other advanced technologies.

One of the most noteworthy aspects of the deal is the absence of explicit U.S. security guarantees for Ukraine, something that Kyiv has long sought amid its ongoing conflict with Russia. While Washington has pledged to ensure Ukraine remains “free, sovereign, and secure,” the agreement does not commit to continued military aid or direct security assistance. The lack of firm security assurances has been a point of contention, as Ukraine remains heavily dependent on U.S. support to sustain its defense efforts against Russia’s invasion.

In exchange for access to Ukraine’s mineral wealth, the U.S. is expected to provide substantial financial support for Ukraine's reconstruction, a significant portion of which will be funneled into the fund. Ukrainian President Volodymyr Zelensky is expected to visit Washington to finalize the agreement, with discussions focusing on the terms of a broader post-war reconstruction strategy.

Despite the promising economic prospects of the deal, it has sparked concern among some European allies who fear that this deal may signal a shift in U.S. priorities, particularly regarding European security. Critics argue that this agreement could lead to U.S. dominance in Ukraine’s future economy, raising questions about the long-term strategic balance in Europe.